The European Union's problems just keep growing. First, it was Greece, which could still implode at any moment. Now it's Spain, which needed a $100 billion loan to prop up its economy. And the pundits say Italy and Portugal are not too healthy, either.
When investors think about hedging, one thing that comes to mind is gold. Keeping the money close to home does not hurt either. That means either Canada or the U.S. Let's focus on the U.S. for right now, specifically, Nevada, which has a lot of natural resources, including gold mines like Pershing Gold (PGLC) and/or Newmark Mining.
Investing in gold is a great way to hedge against Europe's economic collapse and its ripple effects on the rest of the world. Any intelligent investor will want exposure in this market over the next few years. If you want leveraged speculation in exploration you want to delve into Nevada's gold mining companies. It's not surprising that the talented, mobile and efficient newer mining companies are the ones that make the most resource discoveries, not the majors.
The goal of hedging is to invest in the most promising companies when they are quite small. There's an old saying in the mining game: 'Give some money to good people and very often they will discover something." In other words, tapping directly into the talent pool allows a company to nurture its advantages. The size of the company does not really matter. What matters is talent and access to potential resource properties. Small is not synonymous with bad when it comes to gold mining. The smaller companies have the potential to multiply in price if and when they explore successfully. Read more.....