Throughout history, people have done crazy things for INVESTING IN GOLD. During the California gold rush, several men upped and left home in search of gold. They often live in tents and risking their lives, defending the few ounces they found. Today, we still take risks for this shiny metal, and while we aren’t exactly putting our lives on the line, we’re putting our money. In this day and age, that’s a pretty big risk to take.
Many investors have added gold to their investment portfolios for several reasons. The most common of them being that gold isn’t vulnerable to the almost constant fluctuation in value that the dollar experiences.
Are you looking to enlarge your investment portfolio with some gold investments? Here’s what you need to know as a beginner on how to invest in gold.
Gold is a pretty great investment and not just because it is a hedge against inflation, but because it is limited in supply. And you know what they say about limited resources, they cost more.
Moreover, investing in gold is a surefire way of diversifying your investment portfolio, and that is something every investor should strive to do.
Now, you are ready to invest in gold as a beginner. Here’s what you need to know.
Different Ways You Can Investing In Gold
There are many ways to invest in gold, and they are known as investment options.
Buying jewelry is one investment option that you could consider, although it isn’t advisable for beginners. This is because the value for the jewelry at resale may drop significantly, leaving you at a loss.
Again, the question of purity comes into play because gold is usually mixed with other elements when making jewelry. This means that the chances of getting gold jewelry containing 24 karats are slim and very expensive. However, if you want to start on a tiny scale, you could consider hunting down gold jewelry of 14 karats and above.
This usually comes in the form of gold coins, bullion and bars. What stands out as an advantage to this investment option is that ownership is pure and secure. However, you might end up racking up more costs in the process of ownership via go-betweens.
These Go-betweens come in when you have to turn the raw gold into coins or bars. Again, another risk lies in buying from reputable sellers. To avoid this; you could buy from the US Mint.
Exchange-Traded Funds (ETF)
Exchange-Traded funds might be one of the best gold investment options for beginners. With this option, you purchase physical gold with an exchange-traded fund. You won’t be in charge of safeguarding your physical gold, and for that, you pay a small fee. The biggest upside to this option is that you enjoy the benefits of having a liquid gold investment without all the stress.
Gold certificates are certificates of ownership of gold given to individuals from a company that owns gold. However, the biggest risk in taking this option is that your certificate is worth only as much as the company says.
The company might not have enough gold in their coffers, and if they crash, your investment goes down with them.
However, if you must go with this option, use the Perth Mint. The Perth Mint is a gold company that has the backing of the Australian government. At least with such a reputable company, the risks associated with acquiring gold certificates reduce.
There are other investment options that you could consider, but only after you have advanced to a certain level in gold investment. As a beginner, you should consider one of these four investment options.