5 Ways to Invest in Gold
If you are considering investing in purchasing gold, there are probably several questions that have come to mind. Gold can be a very lucrative business but you need to have the knowledge and understanding in order to benefit. Here are the types of ways that you can invest in gold.
I’m willing to bet that you didn’t know there were so many different types but in order to purchase gold you need to know what you’re getting into. Let’s go over some of the kinds of gold you may be interested in purchasing.
Actual gold Buying physical gold is good to enhance your portfolio but it’s not where investing in gold stops. The benefits of buying the actual gold is that you, as the owner, will keep the direct ownership of the gold and it will not decrease in value as long as you own it. As far as owning gold goes, buillon gold is the smartest choice and preferable to gold coins. Generally, you would want to keep this in a bank vault to protect it and keep it secure.
Gold mining stocks When you purchase gold mining stocks you are investing in the mining company. The stocks do come with a fairly high risk factor as gold based losses are not uncommon. However, they are an asset to your investment portfolio if you’re willing to take the risk.
Gold mutual funds When you purchase gold mutual fund. It is a great way to invest in gold when you want to buy physical gold but still have some exposure to it. The disadvantage to gold mutual funds is the high annual fees associated.
Gold options and predictions This is pretty much what it sounds like. The market is much more complicated these days and trading it involves much speculation. This part of gold investment involves speculating on future gold prices. One of the best things about investing in gold options and futures is that the investor can control a large investment with a comparatively small amount. However, these options expire overtime.
Gold backed securities This is an indirect way of investing. It combines the traditional market with physical gold. These dealings are considerably cheaper then physical gold making it very convenient to trade. However, the fees are quite high to prevent such frequent trading.
Investing in gold can bring you quite a lot of money but it can all be lost in a split second. As with many investments, if you purchase gold it is a risk and you have to decide if it is a risk that you are willing to take.