Best Way to Invest in Gold and Silver Mining Stocks

I’ve had some questions about mining stocks, gold and silver mining stocks. And although I think it’s important to have a strong physical position in actual physical gold and silver that is within your possession or stored safely somewhere. But before you get into mining stocks, make sure that you at least start your journey in investing in gold and silver by buying physical bullion investment-grade gold and silver.

But after that, you could get a little bit more sophisticated with mining stocks, which I believe, especially in the next year or two to come, are setup for incredible growth. And, obviously, I’m bullish on gold and silver, and even though I know that gold and silver are gonna be going up, especially I think this year is gonna be a very good year, the next couple of years, we’re going to see, again, all-time highs of gold and silver. But another good way to leverage that investment or take a stronger position in the rise of gold and silver is with gold and silver mining stocks.

Now, when buying stocks, individual stocks, it could be a little bit tricky, as it is. Some companies are better than others. Some companies are better managed than other companies are. Some companies have more debt than other companies. And to effectively invest in individual stocks, you need to do a lot of homework.

You really need to look into those stocks, and in fact, I’m in a process right now where I’m learning how to effectively read financial statements and really assess the value of individual gold and silver mining stocks.

Although I do have a few mining stocks within my portfolio that, in the last couple months or so, have been doing quite well, and I expect them to do better, if you wanna get started, I would suggest in more kind of a passive way of investing in the gold and silver mining sector, which, if gold and silver go up as much as they continue to go up, gold and silver mining stocks are gonna go up even more. 

There’s gonna be even a better return on your investment for a couple of reasons. One of the reasons being that a lot of these stocks pay dividends and they’re not subject to, as a stock, the capital gains or your typical capital gains percentage that you have to pay. As compared to any earnings or profit on physical gold and silver, the IRS treats them as a collectible, which has a whopping 28% capital gain tax on that, which I don’t particularly like.

So, if you want to ride the wave up with gold and silver mining stocks but in a more passive way, what I would recommend is you use exchange-traded fund vehicles. And so there’s two exchange-traded funds, there’s two ETFs that I’ve been investing in heavily and is a good way to kind of distribute your risk and really just invest in the sector.

So, if you know the sector is gonna go up, then these ETFs are gonna go up as well and they’re easily exchangeable. They trade just like stocks. So the two that you want to look into…the ticker symbol are GDX, which is a basket of larger capital, some of the bigger, more established gold and silver mining companies, and then there’s GDXJ, which are the junior miners. These are smaller capital companies, smaller gold and silver mining companies, but a little bit more riskier.

These companies…some of them may go out of business, some of them may fail, but when gold and silver go up, the smaller junior mining stocks have a better potential in returning much bigger gains.

And these ETFs are managed by a company, and they choose for a very minimal fee, I mean there’s no fee at all, really, and even the ETFs, they pay a dividend on the mining stocks that they have within their portfolio. But it’s a great way to passively invest in the gold and silver mining sector, without having to be an incredible stock picker.

Eventually, we’ll wanna get to that stage and, as I learn more about that, I hope to share some of that information with you. But for the time being, if you wanna ride the wave of gold and silver mining stocks, check out GDX and GDXJ. These are great ETF investment vehicles. And in the meantime, as I said, first, build up your physical storage of actual gold and silver bullion.

And for a list of the cheapest, safest, most professional online dealers of physical gold and silver, go to to down my list of the best, most reliable online dealers of gold and silver that I use on a regular basis.

Meet the Author

Dallas Piscopo

I am the founder of Aztec Gold and Silver and a self-taught precious metals investor helping people to become modern-day fiat currency alchemist transforming paper money into true wealth and financial stability through gold and silver investments.

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