How to Gain Exposure to Precious Metals

July 8, 2020
Javier Ortiz

Javier Ortiz

The current situation of the world has led many people to lose their jobs or businesses. In consequence, we are seeing more people deciding to learn how to invest in their future in order to be prepared for a second wave.

One of the industries that seems to have been resilient through the pandemic is the mining industry. But how can you invest in the mining industry in the first place?  

I have compiled a list of various investment opportunities to help you get started.

  • Stocks: One of the if not the simplest way you can get exposure to the mining industry or precious metals is to simply buy a stock in a mining company of your choice. 
  • Mutual Funds: A mutual fund is basically a fund where investors buy and sell in the market and it does not fluctuate during the day. Buying from a mutual fund does not mean you’re investing in the companies in the fund, it means you’re investing in the mutual fund itself which is owned and managed by the investors. You can choose a mutual fund which contains investments from different mining companies. 
  • Index Fund: An index fund is basically a mutual fund which tracks an index in the market. Such as S&P 500. In this kind of fund, however, the owners of the fund do not choose freely what they buy, they instead imitate a specific index like the one mentioned above. Just like mutual funds, index funds do not change price until the end of the day. You can invest in an index fund which follows the mining industry. 
  • ETF: ETF’s or “Exchange-Traded-Funds”, refers to a market security which can be traded through the day and the price will fluctuate during the day. It may contain stocks from different companies at any given time. You could acquire an ETF that contains investments in the mining industry.  
  • Flow Through Shares (FTS): These are basically stocks you buy which will reduce your taxable income for that year, similarly to investing in your RRSP. The mining sector comprises the vast majority of these shares and they can be sold at any given time, subject of course to price changes and the income becoming taxable after doing so. 
  • Lastly we have the option of buying precious metals. There is the matter of delivery and storing, therefore when buying precious metals it’s a good idea to do so with a company that offers storing as well, for a given fee. There are many important things to know about buying precious metals which can be found via SWP, or “Strategic Wealth Preservation”, a youtube channel which shares videos on how to proceed with this option. 

In conclusion, there are many ways to gain exposure to the mining industry and precious metals, which is especially important now that more and more people are spending time and money on investments. Some of these may sound complicated but there are resources we can use in order to improve our knowledge.  

– Javier Ortiz

News & Updates

Join our Newsletter

Don’t forget to follow us on social media to keep up with all our events and news!

Related Posts

Gold Rush in the Peruvian Amazon

Gold Rush in the Peruvian Amazon

The history of Peru has been intertwined with the search for gold well before the arrival of the Spanish conquistadores.  Gold was a highly sough after metal by the Incas and they revered it as the sweat of the sun and believed that it represented the sun's...

TYPES OF MINERAL DEPOSITS IN PERU

TYPES OF MINERAL DEPOSITS IN PERU

Peru is worldwide known as a mining country. Investments and projects are being developed in the country by global leading mining companies. Peru is the second-biggest producer in the world of silver and copper. At a Latin American level, it is the number one producer...

Gold Rush in the Peruvian Amazon

Gold Rush in the Peruvian Amazon

The history of Peru has been intertwined with the search for gold well before the arrival of the Spanish conquistadores.  Gold was a highly sough after metal by the Incas and they revered it as the sweat of the sun and believed that it represented the sun's...