There are many different ways to get exposure to gold, from hoarding gold coins to buying a gold miner. Each comes with different risk and reward dynamics, with miners generally tied to the price moves of the precious metals they mine. Smaller miners, meanwhile, tend to move more than larger ones relative to gold and silver. Here's what that means, and why it happens.
Gold and silver are physical assets, which is pretty simple to understand. However, that carries big implications for investors. For example, precious metals don't offer growth potential over and above the changes in their values, since an ounce of gold will always be just an ounce of gold. A miner, however, is a business that can expand over time. It can produce more gold by investing in its mining operations. This is one of the reasons why many investors prefer miners over physical gold.
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