Guide to Investing in Silver – Chapter 8: Silver Mining Stocks

This is chapter number 8 out of 15. Read the rest:

Read Guide to Investing in Silver – Chapter 1: Introduction
Read Guide to Investing in Silver – Chapter 2: Starting out as a Silver Investor
Read Guide to Investing in Silver – Chapter 3: Silver as an Investment Vehicle
Read Guide to Investing in Silver – Chapter 4: Methods of investing in Silver
Read Guide to Investing in Silver – Chapter 5: Investing in Silver Bars
Read Guide to Investing in Silver – Chapter 6: Silver Coinage as an Investment
Read Guide to Investing in Silver – Chapter 7: Silver in Exchange Traded Funds (ETFs)

Mining stocks are best acquired prior to the mining company acquiring a major find through its exploratory drilling or mining. Substantial capital appreciation of mining stocks can be had if the market is in anticipatory mode of the mining company ability to ready mining production. Consequential earnings as the result of the mining production will also help fuel the anticipatory mood.

If the mine is going through a preparatory stage of production during a time when metal prices are weak, this is the ideal time to invest in the mining stock company which owns the mine. This is due to the fact that it is during this period of time that maximum appreciation of a depressed mining stock can be achieved.

Having said that, nowadays “discoveries” are few and far in between. Currently, some of the stronger mining stocks to invest in are Australian mining companies.Australiahas the world’s largest reserves of recoverable mineral resources. With major investments fromChinain the mining sector of Australia, it is likely that the market for mining stocks will continue to grow stronger.

Nevertheless, before investing in any mining stocks, you are advised to consult your broker or financial advisor as there are no guarantees that the stock you pick will do well. Furthermore, in a globalized economy, demand and supply may come from the most unlikely source. The only way to keep yourself informed and updated on current affairs is to read the world’s news to look for developments in the mining sector that you are interested in. 

Read Guide to Investing in Silver – Chapter 9: Silver Mutual Funds
Read Guide to Investing in Silver – Chapter 10: Silver Futures
Read Guide to Investing in Silver – Chapter 11: Silver Certificates
Read Guide to Investing in Silver – Chapter 12: Comparison between various forms of Investment in Silver
Read Guide to Investing in Silver – Chapter 13: Investment in Silver versus Gold
Read Guide to Investing in Silver – Chapter 14: How to invest in Silver
Read Guide to Investing in Silver – Chapter 15: Conclusion