How to Invest in Gold Recovery
Gold recovery, or the process of extracting gold from mines or scrap, has always been a lucrative field. Unlike currency, gold tends to maintain a certain level of value regardless of political or economic turmoil. In fact, gold is often used as a natural hedge against currencies in case of political or economic unrest. The best way to invest in gold recovery is by investing in companies which mine gold or recycle scrap gold.
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Instructions
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1
Research companies which provide tools and equipment to companies which specialize in gold recovery. Visit financial web sites and search for "equipment for mining" or "gold recovery." The main industry for this is "industrial equipment wholesale".
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2
Look at the top 5 best-performing companies in this industry. Click on each company to be sure they supply equipment to companies which specialize in gold recovery and gold mining.
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3
Determine the top 2 companies out of the 5 which you would like to invest in. You can use fundamental analysis to identify which companies may provide better value. For instance, look for low price-to-earnings ratios, and low debt-to-equity ratios in comparison to other companies that process or mine gold. Some financial web sites provide industry fundamentals to compare against other companies.
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4
Use technical analysis to determine when to buy the gold stocks you have chosen. The best way to conduct technical analysis is through charting. Financial web sites have charting features which allow you to track any company over a given time period. Monitor the 52-week trading range and set up automatic alerts to notify you when the price drops.
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5
Determine how much stock you would like to purchase. Take the amount you have to invest and divide it by the current price of the 2 stocks identified in steps 3 and 4. Contact your broker or discount broker and place a trade for this number of shares. Be sure to place a limit order (instead of a market order) to ensure you won't pay more than the price you've set.
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