Don’t make gold stocks your only investment

T here’s little doubt that gold stocks are a good investment, and certainly many investors are typically advised to put their money into this stream of investment. Gold stocks provide fair to good returns on account of the demand that gold as a commodity enjoys. This means that because gold is usually in demand, the price of the commodity steadily increases, and in times when there’s an unusually high demand the price soars.   However one would be ill-advised to put all of one’s eggs in one basket as it were, because a diversified investment portfolio will ensure more stable and steady returns. Sure, there are those who are risk takers in their investment approach, and while they may win big when the gold price sky rockets, they also stand to lose out on the benefits accrued when other types of investments do well. Or worse yet, the loss is often felt when the demand for gold cools off and levels out for long periods of time. In that instance, the stock itself wouldn’t be performing.   Putting ones money in different streams of investments is not only sensible for the more conservative investor, but can be beneficial too for those who have an appetite for winning big in their investments. If one chooses to invest in stocks that have a history of performing well for instance, then the returns pour in from gold stocks as well as other investments.