Gold Exploration investing generally involves purchasing Junior Mining stocks, and holds more risk than our previously covered Bullion, ETFs, and Royalties.

For the average investor looking for exposure to Gold, sticking with a lower-risk option, like an ETF, is usually the best play.

However, for those with the time and risk-tolerance, Gold Exploration stocks could potentially offer a very lucrative return.

Gold Exploration companies range from those just starting out with no meaningful discoveries, often referred to as a “grassroots” explorer.

To companies with meaningful discoveries, backed up by drill results, indicating a more promising future should they go into production.

The road from exploration to production can vary, with some companies opting to enter production themselves, and others instead seeking to be bought out by larger organizations with the means to begin mining the gold.

As an investor, it is very important to understand not only the current discoveries a company may have, but also how they plan to advance to production in the future.

An understanding of basic geology, along with mining terminology and financial statements, is a key aspect of being an effective investor in this sector.

In addition, connecting with an Investor Relations representative for a company you are considering investing in, can shed light on additional details that can drive your final decision.