Precious Metals: This Is How to Invest in Gold

Precious Metals: This Is How to Invest in Gold


Gold continues to dazzle many ever since ancient times, where it was the measurement of wealth among nations. At present, gold still retains its value as it provides a worthwhile investment. Although, this is not only limited to physical gold, but also gold exchange funds, traded funds, and buying shares of gold mining companies.

Gold, as well as other precious metals, still have immense value even to this day. It is still a good investment to go for. Today, we will look at how you can invest in gold and precious metals.

Investing in Physical Gold

One of the ways you can invest in gold is through buying physical gold. The difference between stocks and physical gold is that you will be interacting with dealers. You also have to pay for storage and you would need to obtain insurance for them.

Gold comes in various forms such as gold bullions or gold coins. In some cases, it also comes in the form of gold jewelry.

Types of Physical Gold

Gold bullions come in bars that weigh up to 400 ounces. At most, its most available form is in one-ounce and ten-ounce bars. These tend to have a high value despite their size.

Gold coins and gold jewelry tend to be the most common forms available. Gold coins tend to weigh about one to two ounces. As for jewelry, the gold content varies by its purity based on karats.

In terms of resale value, gold jewelry would pose risks due to the high markups and the resale value it has. It also hinges on the designer and manufacturing company behind them, which makes the resale value erratic.

For coins, its value depends on how in-demand it is as a collectible item. You would have better chances with local collectors and pawnshops.

Gold bullions garner a higher value due to its purity and price. For this, you will need a refutable dealer and you have to pay for delivery with insurance. You might also need storage as well, such as a large vault or a safe deposit box.

You check this one for more on how to invest in precious metals. After all, there are other precious metals aside from gold.

Investing in Gold through Stocks, ETFs, and Futures

You also have other ways to buy and invest in gold. One such instance is through buying stocks and shares from mining companies. For instance, stocks from Newmont Goldcorp or Barrick Gold.

Another method is through buying gold exchange-traded funds or ETFs. Futures contracts also fit in this, although these are bound to the time limit imposed on them.

The advantage of this approach is how you can track gold prices. Futures contracts happen to be liquid as well. What all these have in common as a downside is that they offer indirect gold exposure compared to physical gold.

Invest in Gold and Precious Metals Today

It is always a good idea to invest in gold and precious metals, as do other investments. It holds up well as a haven for investment. Learn how to invest in gold and watch your investments grow today!

Do you want to learn more about investments? Investing in gold is a good way to manage your portfolio, but investing in other things will make you more successful. Check out more of our posts and guides to learn more about investing today!

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