With the now eight consecutive years of soaring gold prices, many investors have begun searching for a smart way to play the long running red hot gold bullion bull market which shows little signs of cooling down. A number of investment advisers suggest buying gold mining company stocks in order to benefit from the continuously rising gold bullion prices.
Prospective investors need to keep several things in mind if they decide to play the rising long term gold market trend in this manner. Not all gold mining company stocks are sure fire investments; it is imminently possible to mine gold and still lose money, even if the gold metal prices actually rise ten to twenty percent or more on average per year over a number of years. In considering gold mining company stocks, think about the following factors when performing your own due diligence.
Amount of Sales and Earnings
Companies which do not have earnings from actually selling gold on the market are risky and dangerous. Unless you are interested in an exploration play, keep your gambling to Las Vegas and stick with proven gold mining company stocks.
Company’s Proven Gold Reserves
Look especially for proven, but also consider probable, reserve levels. Gold mining companies can only extract and sell gold that they have actually discovered. New discoveries are nice, but it takes years to translate a new discovery into a working, outputting gold mine.
Country Location of Gold
As with any investment that you consider, you have to think about the country in which the gold mining company’s gold is located. Gold properties owned in Africa or South America are considerably riskier than those held in North America, where the rule of law wins out over the capricious whims of an absolute dictator (like in Zaire or Zimbabwe) or a populist politician (think Venezuela or Bolivia). Be wary of gold mining companies whose holdings are located in such politically troubled regions.
Free Flow Cash Funding
This refers to the strategic financial position of a gold mining company. Do they have earnings generated, which give them sufficient cash positions to fund their ongoing operations? Or are they having to constantly look for additional sources of funding just to keep the lights on? Avoid gold mining companies which are not seriously capitalized with adequate funding for ongoing needs.
Below, we close with a list of the ten largest gold mining companies on earth, along with their stock ticker symbols, as well as the country in which they are headquartered. These are all serious mining outfits with impressive reserves, solid earnings, and plenty of free flow cash, as well as opportunities for new discoveries and production on a going forward basis.
The Ten Largest Gold Mining Company Stocks in the World (by Market Capitalization)
1. Barrick Gold ABX.TO Canada
2. Goldcorp G.TO Canada
3. Newmont Mining NEM United States
4. AngloGold Ashanti AU South Africa
5. Kinross Gold K.TO Canada
6. Newcrest Mining NCM.AU Australia
7. Polyus Gold OPYGY Russia
8. Agnico-Eagle Mines AEM.TO Canada
9. Gold Fields GFI South Africa
10.Yamana Gold YRI.TO Canada
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List of the Best Gold Mining Stocks”
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