How to invest in Gold using mining company stocks

If your like most Americans you have thought about investing in gold, but all the clouded information has made the process very confusing.  The recent pricing run up of precious metals has made gold investing a solid choice for a portion of many investors portfolio.  Once you decide you do want to the invest in gold the next decision is how you want to invest in gold.  I feel it makes the most sense to invest in the gold producers which is the mining companies that locate the gold and gold ore and bring the gold material to market.  This investment can be easily completed by taking a look at gold mining stocks that can be purchased via your trading account.

The reason I find the gold mining companies attractive is the the revenue they receive for the gold material should continue to increase while they are still investing the same amount of company revenue that they have in the past.  This means the productivity and profits can increase while expenses remain the same or constant.  Look for gold mining stocks that are already producing gold as many of them are still prospecting and are not producing any gold at all and may never produce gold, which makes them a much higher risk.  Some of the gold mining stocks are listed below for your review should provide some good opportunities.  Please make sure to fully review all gold stocks with your advisor before making any investments. I must also state that I own some of these gold stocks and could make an increase return in my investment if the stocks increase in value.

At the top of my list in terms of having the greatest opportunity for growth is Sierra Gold Corp, symbol SGCP, pink sheets.  This is one of the only gold mining stocks I have seen in the penny stock category that is already producing gold and has secured very productive land for continued gold production in Sierra Leone on the West Coast of Africa.  They have recently secured financing that should allow production to increase dramatically in 2010.  If this occurs this could be a penny stock that goes to 1 or 2 dollars per share.  Again, this is a high risk for high return investment.  Some other gold mining stocks to look at as less risk than SGCP would be Goldcorp (NYSE:GG), IAMGOLD Corp, (NYSE: IAG), Bema Gold Corp. (NYSE: BGO), and Metallica Resources (AMEX: MRB).

I expect gold prices to continue to increase over the next 6 to 12 months which should result in good returns for gold mining stocks.  Picking the right gold stock to invest in will be the hardest part of the gold stock investment decision.  Make sure to consult your investment advisor before making any final decisions on gold mining stocks.  Investing in gold mining stocks one of many ways to invest in gold.