Richard Shemesian Is A Promoter Of Gold As An Investment

Posted by - Admin / October 27th, 2010

Richard Shemesian is an investor in gold who believes that the popular investment could become even more popular. The recession has certainly buoyed gold prices, making them climb to over $1300 per ounce. This is an impressive feat and gold has rarely shown such impressive growth in modern times. It is for this reason that Shemesian is bullish on gold and is a promoter of gold as an investment.

Investing In Junior And Senior Mining Companies

Posted by - Admin / June 21st, 2010

Investing In Junior And Senior Mining Companies

There are many different ways to invest in gold and precious metals. It isn’t necessary to buy physical gold and subsequently plunge money into the shipping and secure storage of the gold; there are many other ways to invest in precious metals including gold. One such method is the investment in stocks and shares of gold mining and exploration companies. Generally speaking, these companies can be broken down into two categories; junior and senior mining companies.

Senior Mining Companies

Senior mining companies are usually the larger and more experienced mining companies that own existing mines. As the mines are already established, there is some indication of how well the company is likely to perform. This can offer consistency in stock prices with fewer surprises (and therefore potential gain) than offered by the so called junior mining companies.

Junior Mining Companies

A junior mining company is more heavily involved in the exploration and discovery of new mining opportunities. They prospect areas in order to find a new mine deposit and, if they are fortunate and skilled enough to find such a deposit, then they will usually establish a new mine to begin the extraction of the precious metal. While there are potentially greater returns with junior mining companies there are also some considerable risks that the investor must consider before pumping their investment into junior companies.

Identifying Mine Deposits

Junior mining companies must identify potential mine deposits and then explore those areas of potential. One of the biggest risks associated with investment in junior mining companies is that there are no guarantees that exploration will lead to discovery. The company may invest heavily in prospecting a particular spot to find that there are no deposits. This can prove costly for the company and its investors.

Establishing A Mine

Another area where the junior mining company holds risk is in financing. Upon discovery of a new mine deposit, the junior will usually open a mine in order to begin exploiting its find and to ensure a greater return should they sell the plot to a more experienced and larger company. If they do not have the financial resources to open the mine then this can also lead to losses.

Selling Their Finds

Once a mine has been developed, the junior will usually look to profit from their find by selling the mine to a more established company. At this point the rewards can be exceptional and individuals that had the foresight to invest in the junior company will also reap these rewards. This is the point in an investment where the risks are replaced by rewards.

Exploration Success And Profitable Investment

Effective exploration is far from a lucky guess. Whether the junior utilizes green field or brown field exploration, there is a lot of scientific and geological work done in order to increase the chances of the company finding and exploiting a viable site. Investors looking for decent rewards will typically attempt to find those juniors that have had the greatest success in their previous exploits. By investing in gold using this method there is excellent potential for profit but there is a real risk of loss too.

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