There’s gold in them ‘thar hills! Well, that’s the saying, anyway. But if you want to invest in gold, you will be pleased to know that you don’t have to go digging for it. Well, not unless you want to.
Is It Worth Investing In Gold?
Well, as another addition to your investment portfolio, we would have to say yes.
Financial experts suggest this is one investment type that is free from the effects of inflation, so you have less need to worry about gold losing its value.
Gold also provides greater returns than some other financial assets, so it’s certainly an option when trying to build your wealth.
What are your options?
There are three main options when investing in gold.
- Gold exchange trading funds
- Gold coins
- Mining stocks
Gold Exchange Trading Funds
This is a common way to invest in gold, as you can buy and sell through a discount broker. Gold ETF’s are handled like traditional stocks, so you won’t actually own the gold that is being traded.
Rather than receiving gold after redeeming your ETF, you will be rewarded with the cash equivalent.
While this might be a blow to you if you had dreams of owning gold for real, you should at least be thankful that you won’t have that risk of being it stolen.
There is more information on Gold ETF’s here.
If you want to own gold, then investing in gold coins is the way to go.
Unfortunately, you are unlikely to find somebody selling gold coins on the high street, but there are a number of websites online where buying gold coins is possible.
However, you do need to be careful. Not every site is reputable, and you could get ripped off, so it’s important to do your homework before purchasing.
When buying, you have a choice between collector’s coins, which sell at a high premium, and bullion coins which are less expensive.
Buy according to your budget, but be sure to store your coins in a safe for security.
Be careful how you handle your coins too, as you want to avoid damaging them.
Thankfully, as answered in the article Does gold tarnish over time, the risk of damage is minimized when buying coins, but you should still adhere to the advice given.
After purchasing, you then need to sell your gold coins for a profit. You need to do this when the value of gold is rising, so it pays to bide your time.
There is more information here if this type of investment appeals to you.
These are investments in companies that mine for precious metals.
If you are already familiar with stock investments, you will have the groundwork needed to start investing in this way.
You might also opt for silver, platinum, or other precious metals when you invest in mining stocks, so you might want to diversify your portfolio.
This beginner’s guide to mining stocks will tell you all you need to know.
What Option Is Right For You?
We can’t answer that, but as we suggested above, you might want to diversify your portfolio and go for all three.
Commit to further research online, and speak to a financial planner for expert investment advice.