Mining royalties are a way of hopefully profiting from the mining industry without owning shares in a mining company that actually digs the stuff out of the ground. Mining royalty companies have the rights to parcels of land that other companies lease from them and do the mining. The royalty company is paid a percentage of the sales from the mining company. This percentage is called a royalty.
Things You'll Need
Find a stockbroker or investment bank. Almost all brokers are online these days. A few to check out are Etrade, Scottrade, Ameritrade and Charles Schwab (see Resources below).
Research mining royalty companies. Two stocks that are mining royalty companies are Royal Gold (RGLD) and Tanzanian Royalty Exploration Corp. (TRE). These are only suggestions and not a recommendation to buy. There are many others to choose from. Most brokers have stock screener programs that will return plenty of detailed information on royalty companies that turn up in your search. You can always go to each company's website for their information as well (see Resources below).
Set up your stock purchase. Determine which company or companies you want to own shares in and pull up a quote in your brokerage account so you'll know how many shares to buy. You can place the order online or you can call in to have a live broker place the order for you. Once the order executes, you will be a shareholder in mining royalties.
Tips & Warnings
- Always look up a chart of the stock price before you buy. This can reduce your risk of buying too high.
- Calling in to place an order usually results in paying a higher commission.
- Research the company in depth to avoid buying too risky of a company.
- Photo Credit www.flicker.com
How to Buy Oil Company Royalties
Oil and gas royalties refer to land, an estate or an oil reserve a person or a business buys as an investment...
How to Invest in Gold Royalties
A gold royalty company invests in gold mines in exchange for future payments or for bargain-priced gold that it can sell for...
Royalty Payments vs. Dividends
Business operations are run with the intent to produce profits, profits being an increase in the businesses' financial circumstances. Profits are created...
How to Make Money With the Stock Market and Royalty Trust Stocks
The two main ways to make money on the stock market are to sell stocks for more than their purchase price and...