Page 54 - Introduction to investing in Gold
P. 54
The Beginner's Guide to Investing in Gold
Disadvantages
It’s very difficult to pick winners, and you could lose all your money on an investment (but you can manage this risk by investing in several companies).
If they don’t make a discovery, there’s a risk they’ll be unable to raise capital for further exploration.
Smaller companies tend to be illiquid (there are fewer buyers and sellers), so there can be a large spread between the price you buy and sell at.
49
