A lot of investors are wondering whether gold production stocks are a worthwile investment. With the price of gold constantly rising, any smart investor should consider including some of these stocks in their stock portfolio.
If you observe the market indicators, you will see that the stock prices of Gold Production companies have made a consistent upward trend. Many of you are already aware of this and know why this trend is present, but for those who are still unaware, this article will explain as to why investment in gold stocks is so beneficial.
There has been a recent boom in the Canadian stock market with Barrick Gold Corp. and Goldcorp Inc. leading the way. Various industries, including platinum mining and Oil Sands stocks have seen increases in their stocks as a result of a weak USD. During this same time period, energy companies such as PeetroBakken faced sudden drop-offs after have their stocks rated poorly by Raymon James Financial Inc.
There is no denying that gold production stocks is the choice of today, and many smart investors are moving their Money Market Funds into gold production stock. Financial advisors are suggesting reaping profits from gold’s steady increase. In past few months, AgnicoEagle, Goldcorp and Barrick were lagging behind in gold production. However, their recent profits has made it obvious that they will overtake others in market. To be precise, Barrick Gold advanced 2.4%, and Goldcorp advanced 4.6%, making it the world's second largest gold production company. Also, Agnico-Eagle advanced 6% with highly improved production rate, making to the fifth largest in Canada.
Despite the fact that gold is not used much for industrial purposes, it is considered to be one of the most precious metals on earth. Gold prices are at an all time high, and prices will only will keep on rising in coming years. As some talks have it, gold will be used to strengthen the economy by introducing it as an alternate monetary asset in some countries.
In November 2010, it was announced by Europe that they have started using gold for the purpose of collateral in natural gas and crude oil trade. Earlier, government bonds or cash were recognized as collateral. By this announcement, gold has gained a significant position and respect amongst the traders and investors. The trend of recognizing gold as currency will surely soon be followed by many clearing houses and other companies.
To conclude, many investors see the prices of gold to be very high and overpriced, but the fact remains that gold will gain more respect in the market in coming future. Investing in gold today is still a profitable decision because the rise in gold production stock prices is bound to happen.
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In the current state of the American economy, everybody is strapped for cash. But for you, the average college student, this is especially true. School is expensive, and figuring out how to live off of the tiny portion of money that you have leftover after you have purchased your textbooks, gasoline, and school supplies can be quite the chore.
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A sturdy house has a good, solid foundation, and is built following a sound architectural blueprint. By figuring out how you will create the home beforehand, you will ensure that you will be building the best structure you could possibly build, and one that will withstand almost any storm. The same may be said of your personal finances.
