If you are looking for the best ways to invest in gold, then it is wise to first educate yourself on all the different options you have, and choose the one that suits your needs best. There are three main ways of how to invest in gold and we will discuss them here.
1) The first one is the possession of actual gold. You can buy gold in 3 main forms:
• Gold Bullion Bars. These come in various weights, and the lightest one is an ounce. If you buy bullion bars, you should make sure that they have a mark or a seal from refiners that are internationally recognized. If they don’t have a mark or seal, it might be difficult to resell them. In general, it is harder to sell gold bars than coins.
• Gold Coins. Coins are a much more practical buy and are one of the best ways to invest in gold. Coins come in many different weights and a lot of them are very affordable. Various countries mint their coins, which makes it the easiest way to sell and buy gold.
• Gold Jewelry. If you buy gold jewelry, it should really be purchased because you like the piece you are buying, as opposed to a pure investment opportunity. The price of gold jewelry includes the craftsmanship of the piece that you are buying.
2) If you don’t want to deal with the hassle and outside concerns and costs of buying actual gold (like its insurance and storage, for example), you should look at the next option of how to invest in gold. These are the Gold Exchange-Traded Funds or ETFs, which basically entail investing in the price of gold. This option allows you to sell and buy gold bullion in the same way that you would sell and buy stocks. So, you can basically paper trade physical gold bullion. The only downside to ETFs is that they take various fees out of your investment, like storage vault fees, insurance fees, and accounting fees.
3) The third way is to invest in a mutual fund that deals with purely gold mining companies. Investing in a gold mutual fund is less risky than investing in an actual gold mining company, as your investment won’t be so volatile. A gold mutual fund may include a number of mining companies of gold or precious metals, as well as oil and gas extracting companies. Like in the case of any other mutual fund, you will be buying shares in a market segment, as opposed to investing in one particular company, which is a lot safer. Investing in one company will always involve more volatile conditions than investing in actual gold or a mutual fund.
For more information, go to: en.wikipedia.org
