This information was published by "Money and Markets" and the article is titled "Gold in the Clouds".

Tip #1: Don't expect every prospect to turn into a winner.

Do your due-diligence. No whims, tips, fantasies, or wheeling and dealing. Just good, solid research, and discipline. Otherwise, the consequences can be unpleasant to say the least.

Also beware of stories that are too good to be true. Entrepreneurs may not "salt" their mines with riches today, but it's best to look at every potential trade with a cool head before investing your cold cash.

That's why you shouldn't put all your eggs in one basket. Instead, have a diverse portfolio of the best mining stocks you can find.

Tip #2: Don't be discouraged if your investment doesn't pay off right away. Keep in mind the story of "Buckskin Joe" Higganbottom. If he'd just stuck with the digging despite disappointing early returns, he could have had a big share of a $1.6 million bonanza. And Winfield Scott Stratton is another exampled — it took him 15 years of digging to strike paydirt — but he walked off with $11 million.

Tip #3: Don't underestimate the potential value of a great discovery. Far too many miners in Colorado sold out their stakes for a pittance before they knew the real size and scope of their find. Similarly, there are a lot of undervalued discoveries out there today. If anything, the recent market correction has only made more of them.

Tip #4: You don't have to be a miner to make a fortune in metals. Take it from Horace Tabor. You don't have to dig the rock yourself to make a killing. Indeed, Tabor's biggest wealth came from putting his money to work. Today, you can build your wealth quite nicely by buying the right stocks.

Tip #5: Don't sell too soon. Time and again, many investors sold too early and missed out on the biggest gains. I think that's a conundrum facing many investors today as they see the price of gold and silver go down. You just have to look at a chart to see the long-term uptrends aren't broken, and a quick glance at fundamentals will show you that supply can't keep up with demand. In other words, the bedrock of today's gold and silver boom is still in place, and smart investors know this is a great time to buy.

Lesson #6: However, there will be a time to sell. How do you know when? You don't. But when you see all your friends rushing in to buy what you bought a long time ago, that's a pretty good warning sign. And when you're broker is pounding on your doorstep to get you to buy what you already own, that's another sign.