Top 10 Reasons Why You Should Invest In Mining Stocks

In consideration of the muted share price performance of the mining sector...here are the top ten reasons to consider investing in mining stocks...

1. They Go Down – The extreme share price volatility expressed in the mining sector represents probably it's best attribute. As we both know, volatility scares the heck out of people, and extreme volatility shakes out the fair weathers…creating amazing buying opportunities for those who understand what volatility offers.

2. Nationalization of Mines - It is true many countries in the world today are taking action against qualified companies developing natural resource deposits. Their actions usually include appropriating the property, removing competent developers, and installing incompetent developers. Once the asset begins to crumble, the country again opens it's doors, and asks for outside help. Large, influential companies may effectively navigate these waters, but most lack the financial power to handle such an assault. Therefore, strong premiums will develop in the share prices of companies in favorable jurisdictions. The safest in the world might include the U.S., Australia, Mexico, and of course Canada, which might be the safest.

3. It's Just Paper - In a period of growing concern over paper assets, financial firm and stock brokerage bankruptcies are becoming common. The level of anxiety in the Western financial system is growing, with the gold and silver community representing those with the most distrust towards the system. However, the accumulation of this distrust over time…results in simply weaker share prices. This equates to cheaper shares for investors to purchase, and potentially cheaper acquisitions for companies and funds looking to buy. One might also say…"But if the broker goes bankrupt…your paper will be worthless." Sure, if there is fraud on behalf of the broker, that can happen. But in a recent conversation with a transfer agent at ComputerShare, I was told, "It's mostly financial firms and corporations who use direct registration and paper share certificates,"--both of which, are available to individual investors (to read my report on these methods, please see my website). This indicates smart money is aware of systemic/brokerage risk, and is actively using these free defensive ownership methods.  (more)