Investors tend to buy gold stocks as a hedge against broad economic fear. Markets remain volatile and fears of a recession or worse remain elevated. Those are the exact conditions that have historically made gold shares a good investment. Gold tends to underperform the broader stock market in the long term but outperforms in conditions like those we are currently experiencing.
Some people like to invest in physical gold for the sense of security its tangibility provides. We’ll be talking instead about miners and streaming royalties firms. Miners pull the gold out of the ground and royalties firms provide the funds for some of those firms to do so. Placing your funds behind the firms that successfully do so in volatile times results in steep returns.
This post appeared first on InvestorPlace.