Monday, November 26, 2018

How to Invest in Gold?

Gold has forever fascinated men and women alike as the best type of investment.

Gold is very difficult to destroy and is rarer than silver. It has been mined heavily around the world as well as the bellies of South Africa. Many investors consider gold as a safe alternative investment. It can easily be bought as well as sold in the market.

However, not many understand the correct method of investing in the bullion market. They are confused where to buy gold coins. Should I approach a local jeweler or is bank the best place to approach. Should I go in for jewelry or are gold bonds a better option.

All this and many more such questions will be answered in our beginners guide in investing in gold.

How to Invest in Gold?

Gold can be bought in different ways. You can either go in for the physical gold in form of coins, bricks or jewelry. Or, you could try buying tangible gold in form of exchange traded funds, stocks, etc.

Gold Coins and Gold Bars


Investors are often confused whether to buy gold coins or gold bars. The answer to your confusion lies in your need. If you are a large-scale investor, then bars are the simplest and efficient way to invest. There are different sizes of bars available in the market from 1 gram up to 1 kg and even more. You need to invest in only those gold bars that have 99.9% pure gold marking. They should contain clear markings such as the refinery or serial number.

Small gold bars come with a high premium tag. However, they are easy to carry and store. You can purchase multiple bars and keep them conveniently as compared to one large bar or brick.

Coming to gold coins. These coins are also a popular choice for many investors. There are two types of gold coins available, one as a collectors item and the other is specifically made for gold investors. So, you need to choose coins made for gold investment. Again, make sure it contains 99.9% pure gold.

Gold ETFs and Funds

If you do not want to store gold physically, you always have an option of purchasing gold exchange traded funds or ETFs. The SPDR Gold Shares are the largest ETF in the world. The price of ETF moves up and down according to the spot price of gold. You can trade ETFs just like any other shares.

Other option for investing in gold is purchasing mutual funds. These mutual funds are related to investment in companies that are involved in mining, distribution as well as processing gold. The price of the funds does not depend on the gold directly. Instead, it depends on the companies who get gold from the ground and sell it to investors. As the demand goes up, so does the profits related to mutual funds. If the company or mine is affected in any way, it will lead to a negative effect on the fund price.

Gold has become a popular choice of investment for many after the year 2000. The gold prices have risen around 450% per ounce from 2000 to 2010. However, there is no guarantee the prices will remain high forever. The gold price may fall unexpectedly at any given time.

However, experts believe, gold prices will rise and it will remain a safe investment during a time of crisis. Thus, make sure you invest in gold along with a well-planned and well-diversified portfolio to keep your wealth strong and stable.



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