How to Invest in Mineral Stocks

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When investing in mineral stocks, such as oil, gold, silver and other precious metals or minerals, buy stocks when the prices are all all-time lows, and sell those stocks when the prices rise again, as most mineral investments are cyclical over time. Put money in various mineral mutual funds with information from a portfolio manager in this free video on investing.

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Video Transcript

Do you think inflation is going to pick up over the next several years as demand and the United States and global begins to pick up? If you do, then mineral stocks may be something for you to consider. The reason is they do well during periods of increase and inflation. Hi, I'm Roger Groh with Groh Management. Today we're here to talk about mineral stocks. What they are, how you can benefit from them and when in general to buy them or to sell them. As I said before, mineral stocks can do well as inflation picks up. If you begin to look at the economic data forecast and you start to see that commodity prices are tightening and the demand for all products are starting to go up especially in home building, then you may consider to buy into mineral stocks at that point. What that might be how about oil, maybe gold, perhaps silver as an example. Where can you buy that kind of thing? Well, if you like gold as an example there's a company called US Global Investors. You can Google them and they've been long investors in gold. I'm not recommending their stocks but I am recommending that you go to their website and you look at what they've written over the last twenty years in terms of why you should buy gold or other mineral stocks and when you should buy them and when you should sell them. In addition, Goldman Sacks also has some substantial research that you can get which will detail specific funds that you can buy or mineral stocks that you can buy where you can benefit in an increasing inflation area environment. At the moment, where we have prices continuing to go down in most commodities. We've all seen the price of oil going half over the last year. We've seen copper, gold most of the prices go down. It's probably not the best time to buy. On the other hand, these things are cyclical. So you have to buy them when they're bombed out and they're low and you have to sell them when they go up a lot because eventually they'll go back down. Are we at the bottom? I'm not sure yet. That's going to have to be your call but be very careful. There's great vulnerability investing in here. It's hard to money when you're trading as oppose to buy for the longer term. Other things to consider when you're investing, you can buy mutual funds which invest in the minerals. On the other hand, you can also buy companies which actually mine them especially Canadian companies where there is tremendous amount of natural gas and gold and copper. Expiration going on in Canada and in Alaska even though the Canadian companies operating in Alaska specific names well I'm going to leave that up to you and your broker. Do your homework on this. They're very vulnerable and you have to be careful. I'm Roger Groh. Thank you for spending a few minutes with me and I hope you learn a little bit about buying minerals stocks.


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