I have recommended that gold investors invest their first $10,000 in bullion coins, preferably American eagles for Americans and maple leafs for Canadians. Buy the coins that your nation’s mint produces.
I have not recommended gold mining shares.
The poor souls who invested in mining shares have lost their shirts. The “junior” mining share index is back to where it was in 2002. If people had bought coins, they would be up five to one.
When you buy mining shares, you are buying the companies’ management. You are buying hope for gold in the ground. You are buying hype.
Mark Tawin said it best: a gold mine is a hole in the ground with a liar in front of it.
The typical investor thinks “stocks” when he hears “gold.” He thinks the way his stock broker has trained him to think. He is therefore going to lose his money.
Buy coins. Then buy bullion, preferably stored outside the country in Switzerland. GoldMoney offers this service. So does Bullion Vault. (For trusts, Bullion Vault is far easier to use.)
Your stock broker will advise against buying coins. He gets paid when you buy stocks.
Click the link to see what happened to te people who bought mining shares rather than coins. The charts tell the story. It’s grim.