First and foremost, investors should consider the volatility of the mining markets. Because of the price fluctuations, buying opportunities are created on an almost daily basis. These opportunities can lead to explosive growth, unlike several other sectors.
Second, the nationalization of mines needs to be taken into serious consideration. The safest markets include the United States, Canada, Australia and Mexico. Serious risks need to be measured and taken into account when considering investment into other international markets. Government stability, political climate and other variables must be thoroughly researched and weighed against realistic risk assessments. Recent articles at Mining.com have featured articles such as "Illegal Mining is Latin America's New Cocaine."
Third, mining shares are currently trading at a 30 year low as of the date of this blog. If you have an investment strategy of buying low and selling high, opportunities abound within this sector. By gaining exposure in a portfolio in a depressed sector, returns can be maximized. Charts on the mining sectors clearly show companies involved with mining operations are due to rebound. Solid evidence with similar sectors shows investments made before the sectors come back into favor is the way to maximize capital returns.
The final piece of advice from Randy Miller at Inspiration Mining is to always diversify your portfolio. Having too much exposure in one sector is far more riskier than anything else you can do. Diversification, with patience and research will always lead to your biggest gains. For more information, please visit our site at Inspiration Mining