Who buys Gold stock?

[dazzle]

People who like gold typically like to hold it in their hand, who buys Gold stock? Are they really interested in paper Gold? Or what?

[mariobros]

Investors who are interested in the potential returns of investing in gold, but do not want to deal with the physical storage and security concerns of owning real gold, may choose to invest in gold stocks instead. Gold stocks are shares in companies that mine, refine, or sell gold, and their prices are influenced by the price of gold as well as other factors that affect the company's financial performance.

Investing in gold stocks can offer several advantages over owning physical gold. For example, gold stocks can be more liquid and easier to buy and sell than physical gold, which can be cumbersome to transport and sell. Gold stocks can also offer potential for higher returns than physical gold, as they are affected by a variety of factors beyond just the price of gold itself.

However, it's important to note that investing in gold stocks carries its own risks and potential downsides. Gold stocks can be influenced by a variety of factors that can affect the company's financial performance, such as mining costs, labor disputes, and geopolitical risks. Additionally, gold stocks can be more volatile than physical gold, as their prices can be affected by a range of market and economic factors beyond just the price of gold itself.

So I would say convenience of paper versus the physical Gold coins that you would have to store. I don't see any other obvious reason who a fan of Gold who wants to invest money.

[oscartg]

Gold stocks will struggle in a bull market, so I would steer clear of gold stocks first quarter 2024