Investing In The Best Gold Mining Companies

gold bullion barThe price of gold has zoomed in recent months and this has driven a lot of investors into a fever of excitement. Most investors believe that the price of gold will continue to rise. Some speculators believe that the price may even hit the $2000 mark in the next few months. For these reasons, investing in gold has become a hot topic and lots of investors are looking for information on the best gold mining companies across the globe. The good thing about gold is that it is an international commodity. This means that the American investor can buy stocks in gold mining firms which are based outside the United States.

Investing in African Gold Mining Firms

Some of the best gold mining companies in the world are located in Africa. The Anglo Gold Ashanti is located in South Africa. This firm is easily the third largest gold mining firm in the world. It has productive gold mines in both Ghana and South Africa. The stocks of this firm are quoted on the Johannesburg Stock Exchange and investors can invest in the stocks from practically anywhere in the world. Apart from Ghana and South Africa, gold mining is a thriving business in some parts of northern Nigeria. Zamfara state, in north western Nigeria, has been in the news recently because of a cave-in in an illegal gold mine in the state. For the smart investor, this is the right time to invest in Nigeria. The industry is still in its infancy here so it is possible to get into the business early and make a killing. The fact that one American dollar goes for about 155 Nigerian Naira is great news as well. The investor can get good value for money here but the risk is also quite high given Nigeria’s security and infrastructural challenges.

Investing in Latin America

For the American investor, the great thing about investing in Latin America is the relative proximity to the US. Again, the power of the American dollar is a factor that gives the American investor a bit of leverage. In this context, the Buenaventura in Peru is an excellent idea. This company is ranked N0. 9 by the Forbes 2000 and it is definitely one of the best gold mining companies in Latin America. Buying stocks in this firm will yield great returns for the investor.

Investing in the top 10 Companies

Investors with a large capital base can simply target the top 10 gold mining firms in the world. These stocks are not very cheap but they represent great value for money because these are some of the best gold mining companies in the world. These firms run profitable operations and are likely to make good returns for the investor. Some of the great companies in this category are Barrick Gold of Canada, Newcrest Mining of Australia, Newmont Mining in the US and Goldcorp of Canada.

These are some of the best gold mining companies in the world. Investing in gold is a great idea. There is money to be made but the investor needs to select the right companies carefully for best results.