Ben's 2014 Guide To Precious Metals Investing Part 2: Picking Mining Companies-My 4-Pronged Str

http://ift.tt/1s48u7J ByBen Kramer-Miller:

Back in February I wrote an in depth guide to precious metals investing in which I gave reasons for owning precious metals and some mining stock selections. I was, however, somewhat vague in my portfolio strategy with respect to investing in mining stocks and basically just gave investors a laundry list of stocks to buy and classified them into essentially large and small companies.

Looking back this is a rather unsophisticated approach and I’ve since realized that I should put forth a portfolio strategy for mining investors to follow. What I’ve come up with is a diversification across four different kinds of mining companies that should be represented in your portfolio. While the proportions should vary according to your risk tolerance each kind of company has something to offer every portfolio. They are:

1. Royalty/Streaming Companies

2. Optionality Plays

3. Project Development Plays

4. Growth and Cash-Flow Focused Companies

While these companies are all

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