Gold stocks that bring glittering returns
The top gold stocks are likely to generate returns superior to gold itself. For the investor seeking exposure to the gold sector but with the potentially higher returns, they need to acquire shares of high quality gold companies. Essential to the financial success of any gold miner is having an experienced, technically competent senior management team. These executives are able to execute on their business objectives. Gold projects are completed on time and on budget.
The biggest challenge for the gold mining industry is escalating costs. There are shortages of qualified staff and equipment, tougher standards for operating mines and operating in areas far from established infrastructure. If costs go too high, gold development projects become uneconomical and are either delayed or cancelled. Another challenge for gold companies is operating in countries that are politically unstable. Investors favor gold stocks of companies that can overcome these challenges.
Gold stocks that appreciate strongly in price are gold companies that are finding new deposits, adding to their reserves and growing their production. These are companies that are overcoming the difficulties the general mining industry faces. These gold companies are demonstrating the ability to successfully complete their projects. Investment money goes to the gold miners that can execute.