Gold can be an ideal addition to your investment portfolio for several reasons. It provides a secure place to store wealth, it helps diversify investments, and it protects against inflation.
Unfortunately, learning how to invest in gold can be daunting for novice investors. Fortunately, there are multiple approaches available for starting out.
- Physical Gold & Bullion
One popular way to invest in gold is through physical gold bars or coins. You can keep them at home or put them in a gold IRA. These products provide easy ownership of the precious metal and can be acquired at any time, making them ideal for beginners who wish to begin investing in this precious metal.
Another popular way of investing in gold is by purchasing jewelry such as rings and necklaces made with the metal. These items can be acquired in small amounts and easily traded, making them an ideal addition to your portfolio.
- Exchange-traded Funds
Another popular way to invest in gold is through an exchange-traded fund (ETF). These investments track the price of gold, with investors having access to shares through their brokerage accounts.
- Mutual Funds
Mutual funds differ from exchange-traded funds in that they are managed by professional investors and typically invest in a variety of assets, including gold. Mutual funds offer investors the security of professional management with lower expenses than ETFs while still offering low risk investments.
- Gold Futures & Options
A final option for investing in gold is purchasing gold futures contracts. These standardized agreements guarantee a specific amount of gold at a future date, making them slightly more complex than investing through ETFs or mutual funds, but still an efficient way to accumulate the precious metal.
- Mining & Refining Companies
To capitalize on the rising gold prices, investors can purchase shares in companies that specialize in mining and refining metal. You may purchase these shares through a broker or directly from the company itself; alternatively they could also be listed on an online stock exchange.
- Rare Gold Coins
Gold’s price is determined by demand and supply, so investing in coins is an excellent way to guarantee you always have a steady supply of the metal in your portfolio. There are coins with various designs as well as older, rarer coins that have numismatic value – an additional value added over and above the underlying gold price.
- Gold Streaming Services
A growing number of gold streaming companies have emerged to give investors the chance to invest in physical metal without owning actual bars or coins. These businesses provide financing to gold mining firms in exchange for discounted prices on future gold purchases.
- Gold Miners
The gold mining industry is an exciting and profitable sector that can add significant value to any investor’s portfolio. Companies in this sector typically pay dividends to their shareholders, so investors who own shares in these businesses stand to benefit significantly from ownership.