While sometimes risky, mining stocks can also be strong performers when commodity prices move up. However, due to the volatility of these stocks, Pat McKeough recommends that they only form a modest part of a well-balanced portfolio.
Canadian penny mining stocks are some of the riskiest stocks you can buy. These companies are trying to find mineral deposits that mine at a profit and such a find are exceedingly rare. Because of this, it’s even more important to look for investment quality in penny mines.
For example, we automatically rule out investing in penny mines that promote themselves too aggressively or do so misleadingly. The mine-finding effort is more likely to succeed if the managers focus on finding a mine rather than hyping their stock.
Junior mining stocks are usually smaller companies that typically take on riskier mining projects. However, if a junior mining stock is successful at finding and mining, it can mean huge returns for investors.
No matter what type of mining stocks, or other stocks you invest in, TSI Network recommends following our three-part Successful Investor strategy:
- Invest mainly in well-established, mostly dividend-paying companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities);
- Downplay or avoid stocks in the broker/media limelight.
[text_ad]
That should raise this year’s gold production by 4% to 6.2 million ounces....
NEWMONT CORP....
Alcoa is now up over 300% since the split, thanks largely to rising aluminum demand and prices as the global economy recovers from the COVID-19 pandemic....
ALAMOS GOLD, $9.35, is a buy. Through the shares (Toronto symbol AGI; TSINetwork Rating: Speculative)(www.alamosgold.com; Shares outstanding: 392.0 million; Market cap: $3.6 billion; Dividend yield: 1.4%) investors tap into the company’s Mulatos mine in Mexico, and the Young-Davidson and Island mines in northern Ontario.
In 2021, Alamos’ gold production rose 7.1%, to 457,200 ounces from 426,800 in 2020....
IAMGOLD, $3.91, is a buy. The miner (Toronto symbol IMG; TSINetwork Rating: Speculative) (www.iamgold.com; Shares outstanding: 476.9 million; Market cap: $1.8 billion; No dividends paid) is now the target of U.S....