I use what I call my six pillars of investing when looking at any investment.
This is what they are:
1) Timeline - I want a range of investments - short, medium and long term 2) Interest rates - how do rising interest rates impact my investment? 3) Inflation - how does inflation impact my investment? 4) Currency - what currency will my investment be in? 5) Cycles - nothing goes up forever. I like to know where I'm investing in the cycle. I obviously prefer to invest towards the bottom! 6) Diversification - I don't like to have all my eggs in one basket.
When looking at Gold mining companies, I then use my BRIDGE system to decide where to invest.