There are many different ways to invest in gold. Before investing in gold, it is important to educate yourself on all the different investment options and then find the one that best fits your needs.
The most obvious way to invest in gold is through the purchasing and possessing of gold. There are several ways to do this. One is with gold bullion bars.
- Gold Bullion Bars. Gold bars are available in many different weights, the lightest being one ounce. When purchasing bullion bars, it is important that you only buy bars bearing a seal or mark from internationally recognized refiners. Without that mark, they will be difficult to resell. Selling gold bars is typically more difficult than selling gold coins.
- Gold Coins. This is one of the reasons that purchasing gold bullion coins is perhaps a more practical way to buy gold. Bullion coins are available in various and affordable weights. Many different countries mint their own bullion coins… making this the easiest ways to buy and sell gold.
The value of a coin is dependent upon the gold content and the price for gold at the time. The face value of a coin does not reflect its value.
Gold coins are also a beautiful work of craftsmanship, and unlike the next way to possess gold, the buyer is not paying for the craftsmanship.
- Gold Jewelry. Gold jewelry is another way to possess gold. Gold jewelry should be purchased out of an appreciation and enjoyment of the piece. It should not be viewed as a pure investment in gold. The price of gold jewelry takes the craftsmanship of the jewelry into account as well as the gold.
Gold possession will invariably lead to outside costs and concerns involving its storage and insurance. This leads some investors to the next set of options. There are several ways to buy or invest in gold that do not involve the actual possession of gold.
- Gold Exchange-traded Funds. Exchange-traded funds or ETFs eliminate concerns about authenticity, purity, storage and insurance. ETFs allows you to buy and sell gold bullion just like you would buy and sell stocks. An ETF is an investment in the price of gold. This is a way to paper trade physical bullion.
The drawback to an ETF is, that it is a gradually depleting asset. Insurance fees, storage vault fees, accounting fees and marketing budgets will be taken out of your gold investment.
Also, like any stock or bond you will need a broker and anytime a broker is involved, fees are sure to follow. You will likely be paying for transactions, annual account fees and taxes on the account.
Gold Stocks. Another way to invest in gold is via a gold mining company. These investments are going to be more volatile, as you are investing not only in gold, but also in a company.
- Gold Mutual Funds. A mutual fund is a less volatile way to invest in mining companies. A mutual fund in gold can involve a group of mining companies, or a group of precious metal mining companies or companies that extract oil and gas as well.
Like any mutual fund, you are buying shares in a segment of the market and not investing in a certain company. And an investment in a company is always going to be more volatile than an investment in gold itself.
Regardless of how you decide to buy gold, make sure you add it to your portfolio. Gold’s prices haven’t peaked yet, and inflation is on its way. If you want to invest in gold, then check out our free guide to learning How to Buy Gold Coins. You can get started in the next five minutes.
Of course, the best way to invest in gold is just through gold coins. They’re easy to sell, easy to find, and relatively cheap gold. Want more information? Keep browsing this site — it has everything you need to know.