How To Buy Gold as an Investment: 5 Easy Tips

September 18, 2017

Are you interested in an investment that can help protect your portfolio when the market drops? If so, gold could be a great investment for you.

You may think of gold as primarily a part of jewelry, but you can buy straight bullion as well. However, it can be hard to know exactly how to buy gold in a way that gives you the most value while protecting you from scams.

Here are five easy ways to invest in this precious metal.

Buy Gold Directly

The most straightforward way to invest in gold is to buy it directly. You can buy minted gold coins, such as South African Krugerrands, Canadian Maple Leafs, or American Eagles.

Of course, gold is not something you can buy and make a quick profit on. The purpose of owning it is to provide a hedge against other economic downturns. The most secure way to do that is to hold it in your hands.

Gold Certificates

If you like the idea of owning gold bullion but you don’t want to keep it in your home where it can be stolen, there are other options. Buying gold certificates gives you direct ownership of bullion without actually taking delivery.

The gold is kept by the bank, and you pay fees related to insurance and storage. This can be a great way to invest directly and safely.

Gold Exchange Traded Funds

To buy gold as part of your investment portfolio, you can invest in a gold exchange traded fund (ETF) such as the SPDR Gold Trust or iShares Gold Trust.

When you hold gold in this way, its value becomes part of the overall value of your 401k, IRA, or another investment portfolio. This can be a great way to gain the value of gold investing along with the benefits of a retirement account.

Stocks of Mining Companies

If you’re interested in owning gold indirectly, you can choose to invest in mining companies. You can gain additional value on your investment, over the price of gold itself, based on the performance of the company.

You want to do your research and choose the right kind of stock for your needs. If you want a more speculative investment that could turn out really well or really poorly, try buying stock in smaller, less established companies. For a more conservative approach, choose established, profitable ventures.

Gold Options

Sophisticated and experienced investors may prefer to buy gold through speculation on prices, rather than owning it directly. Working with gold options allows you make a bet on whether the price of gold will rise or fall over a period of time.

If you’re right, you can reap a handsome profit. If not, you can lose a significant amount of money. You want to make sure you know exactly what you’re doing and that you protect your financial positions.

Gold Can be a Great Investment

Gold is an excellent hedge against a falling dollar and overall poor performance in the U.S. market. You can also speculate on prices to try to turn a large profit. However you choose to invest in gold, make sure it’s part of your overall financial strategy.

Are you interested in the value of your gold jewelry? We’d love to help. Contact us for an estimate today!

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