BEST WAYS TO BUY GOLD 2019
Over the years, a lot of studies have revealed the lucrative nature of the gold investment and buy gold. No wonder it has fast become a popular one among investors. A lot of other investors could be interested, but how to go about it becomes the stumbling block.
In this blog, we will highlight the different ways you could buy gold. The essence is to help you become familiar with how to invest in gold.
When talking about buying gold, you need to understand that it could be either physical or paper gold. We will consider both in this article. Now, are you an investor? And you’re interested in investing in gold? Let’s look at the options you have.
This works best for investors that have an interest in physical assets. The physical gold can come in the form of coins, bars, or jewelry. You can buy gold from jewelers, order online, or get them from local dealers. These commodities are traded based on their weight value.
If you decide to go with this option, you should pay close attention to security. If they are by any chance stolen, it means your entire investment is gone.
GOLD EXCHANGE TRADED FUNDS (ETFs)
An ETF trades on a stock exchange, usually with gold bullion as their main asset. This particular option makes gold available to you in an investment portfolio. Your investment here is on the value of the net change in the price of gold.
The implication is that you get to make a profit as investors purchase gold. You don’t have to deal with the gold itself. The ETFs help you to do a tracking job on the commodity. Some popular ones include SPDR, Gold Trust, and iShares Gold Trust.
GOLD MINING STOCKS
Here you can invest in shares of gold mining companies. These companies most times own established mines that produce a sizable quantity of gold. This is usually yearly.
The growth in the stock usually depends on the expected future earnings of the company and not only in the value of the gold. You must work with a trusted company, so you don’t lose your investments.
This is another great option for you to invest in gold. With Gold futures, you can speculate on the price of gold, either rising or falling. If you’re able to make accurate predictions and act on it, you could make some good profit. For example, if you sell at the current price and it happens to fall after that, then you stand to gain some value.
This involves opening a gold account in the bank that keeps the value of your investment. There are two main options here. You could go for an allocated account. It keeps your gold in a secure location after purchase until you need it.
An unallocated account, on the contrary, allows the bank to make investments with the gold. At your prompt, the bank gives you the gold value of the investments they have made.
Here you are buying gold coins that have some historical value in them. Their value is usually hinged on factors like historical dates, or special marks. These types of coins are often limited because of their significance. This makes their value even higher.
I believe you now know how to invest in gold as well as some of the options available to you. Gold investment can be greatly rewarding. You should, however, do thorough research before investing. This way, you will have all the necessary information that will help you make your decisions. I wish you the best!