Buying gold stocks not as simple as throwing money at the investment

S hoddy investment gurus and financial advisors will have you believe that investing in gold stocks is a simple enough process that one only needs to put money where the gold is and wait for the returns to pour in. However, this is rarely the case because like most investments, one must do the due diligence necessary in order to ensure that the investment is not only the right one but that the returns will be the best possible for the class of investment.   Firstly it’s important to understand the elements that affect the trading of gold stocks in the first place, such as supply and demand which will afford you the information necessary to make the investment at the most opportune time with returns that satisfy. Then one needs to consider which investment option is best, because there is the choice of investing in actual gold bullion or gold stocks; with the latter performing best in stable political environments and the former fluctuating or not holding its value in divergent economic and political environments.   Ultimately, the better prepared one is and the more informed prior to making the decision regarding investing in gold stock, the better the investments returns. Going into an investment head first with cash in hand is not conducive for good investment returns.