Gold Investment - Risks attached to Investing in
Gold Shares
Investing in
gold via gold shares or gold mining shares, remains for the strong hearted, because of all the
risks attached when using such a method
to invest in gold.
'Trading' and not 'investing'...
It is
actually more correct to refer to it as 'trading' and not 'investing,' because gold shares listed on
the JSE (Johannesburg Stock Exchange) are mainly driven by sentiment.
In many
instances, the actual value of a gold share takes a back seat when it comes to movements in the share
price. The main reason for this, is because movements in gold shares are mostly driven by short-term
speculators/traders, whom love to see huge short term fluctuations in order to make quick
profits.
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