Investing in gold — a stable metal that's best known for its high worth — can help diversify your portfolio, provide high returns, and reduce the impact of market downfalls on investments. Owning physical gold is the first choice when it comes to best gold investments, but there's another way to go: gold stocks.

Gold stocks focus mainly on either gold mining or streaming. There are many companies where you can find profitable gold mining projects for investments. If you've always dreamed about investing in gold but are turned off by potentially high costs and low returns, check out this list of tips to buy the best gold stocks.

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What Are Gold Stocks?

Gold stocks are shares in leading companies that are generally involved in gold mining, exploration, extraction, and production. Investors who own gold stocks in profitable companies aim to benefit from changes in gold price without having to own or store physical gold — and that alone is enough of a reason to consider it.

5 Tips For Investing in the Best Gold Stocks

Just like any other stock, gold stocks can be purchased and traded in the gold market. Sure, you could just trial-and-error many gold stocks until you find the best gold stock that maximizes profit without any heavy initial investments. But if you want to spend a lot less time and money, start by following some expert tips.

Here, we'll look at 5 of the tips to choose the best gold stocks, plus how to get started with investment.

Start Investing Low

One of the best things about gold stocks is that you don't always have to start with a high budget. In fact, many experts always suggest starting with low investment and eventually adding more money to the gold stocks.

Choose the Investment Mode

• There are three types of gold stocks: mining companies, streaming and royalty companies, and exchange-traded funds (ETFs).

   

•  Gold mining companies are involved directly in exploring gold belts, developing mines, and extracting gold from the earth for selling.

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• The streaming and royalty companies are quite different: they do not own gold mines but pay a percentage of revenue to the existing mines.

   

• Gold ETFs are the third most popular type and are typically traded in exchanges like stocks.

   

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Select the Best Gold Mining Company

As you start off in gold investment, it's important to choose the best gold mining and exploration company. This is a marathon — not a sprint — so it’s more about finding time and researching the company that can help you with the profitable gold stocks. If you don't want to start the research process from the very beginning, you may consider Fields of Gold as your trusted partner.

Ask Experts

It's a common misconception that you need to invest a huge amount to be a successful investor. There are investment options for both beginners and experts; what matters is how you strategically choose and invest in the best gold stocks. If you feel you're getting overwhelmed with the choices, talk to an expert or financial advisor.

Keep an Eye on Gold Prices

When gold prices change, the costs of gold stocks also change. Investors who own gold stocks will need to check the gold prices in the market and keep themselves updated.

Which is Better: Owning Gold Or Gold Stocks?

At first glance, investing in physical gold appears simple, but you'll need a storage option to keep gold safe. That's where gold mining stocks seem like a great investment option. It's a simple way to generate profits from the change in gold prices.

While investing in the best gold stocks seems profitable, it's likely you'll find yourself searching for the best gold mining companies. If that's the case, you can trust Fields of Gold for the most prolific gold mining projects in Canada — so you can focus more on the returns.