First Beneficial Steps in Mining Investing

There is certainly no bad time to invest in something profitable, however, it’s essential to choose thoroughly which industry to pick.

Right now, one of the best activities to invest in is mining, whether it be gold, copper, zinc, or any other material.

Here is a sum of everything you need to know if you are about to make your first steps in mining investing.

One industry, two categories

In general, mining stocks can commonly be broken up into two groups — majors and juniors.

The first mentioned are well-established companies with extensive experience in the mining business. Moreover, they have proven mechanisms for exploration and mining, and have constant output year over year.

When it comes to the juniors, they are almost the exact opposite of mining majors. They tend to have insufficient capital, take on risky mining exploration, and high hopes for immense returns in the future.

More precisely, the juniors often rely on wishes to find a large drift of a mineral that the market craves a lot of, however, this is a rare mixture of the right deposit at the right time. However, if it happens, juniors are able to return more in a week than a major will return in years.

So, while junior mining stocks may offer some uncertain glamour, you better opt for a lower-risk stock with the potential for dividends and some decent appreciation, by investing in mining stocks of deep-rooted businesses with high-quality reserves.

Some more useful tips for investing in mining

Choose a stable political region.

As it is genetically a politically exposed business, one of the main things to consider is choosing mining companies that explore in a stable, secure political region with big respect for property rights.

Invest in mining stocks with an extensive base of operations.

Do not undervalue the power of the diversified reserve base, even if the businesses you choose to invest in have substantial reserves. In this way, they are not reliant on a single mine’s production or the political situation in any one region.

Aim towards diversification of risks.

So far, the mining industry is generally dictated by large holding companies held by powerful institutional investors, while the mining start-ups are usually funded via private equity placements. This all leads to a deficiency of diversification and ultimately higher costs of funding.

Tokenisation of shares in mining project companies through the innovative blockchain technology make them public and provide a cost-effective means of diversification of risk and thus lowering the cost of early-stage capital from a broader range of public participants.

Blueshare is the first company offering both traditional and tokenised equity capital participation shares of the consolidated Swiss-based company, Interprom Mining AG.

They grant exposure to a construction and mining business with 23 years of proven track-record and a pipeline of natural resources mining and exploration projects.