A Guide to Investing in Gold

How to Invest in Gold

Due to its scarcity and because its value doesn't move in line with other assets, gold constitutes one of the best options for diversifying your portfolio. By far the most popular choice of precious metals, investing in gold is a surefire way to preserve your wealth, which you can pass from one generation to the next. Although gold prices were down for the first trimester of the fiscal year, the metal still holds strong and continues to be the number one choice for investors.

Tips for investing in gold

If you're a first time buyer, then it is highly advisable to consult with an analyst. Ideally, and if your budget allows it, you should hire a consultant specializing in gold investments full time. However, if you want to take matters into your own hands, then here is what you should know:

  • Establish and stick to your investment objective

  • Always buy and sell via a certified, respectable and reputable dealer

  • Don't rush in and only invest as much as you can afford

  • It's preferable to buy small ingots and coins; they're easier to store and can be sold easier

  • Gold bullions are an everlasting and risk-free investment

How to buy gold

You have several options available when purchasing gold, namely:

  • Physical gold

The safest way to invest in gold entails purchasing gold coins or bars from a certified dealer. Frankly, you won't get a more direct exposure to gold than this.

  • Gold stocks

In case you're an investor with a lot of experience, then gold stocks represent a good option to expand your portfolio. Mining stocks constitute a good method of leveraging higher gold prices through corporate operations. Even though you can get superior potential profits, don't forget that you're also exposing yourself to the possibility of management mistakes and operating risks.

  • Gold ETFs

The simplest way to buy gold entails investing in exchange traded funds. The ETF is basically a type of mutual fund that can be traded on the stock exchange market similarly to a regular stock. It is important to note that ETFs values are fixed and do not change, meaning that an exchange traded fund holds gold bullion as the one and only asset. While the recent interest of the consumers is yet another reason to purchase ETFs, keep in mind that this option is subjected to the fluctuations of the equity market and the actual spot price of gold.

  • Gold mutual funds

In case you're reluctant about purchasing physical gold, but want some exposure to the precious metal, then mutual funds might be the right option for you. The mutual funds include gold stocks of well-established mines that produce established amounts of gold annually. Because the price of gold is fixed, you're taking fewer risks than if you were to purchase shares from the gold mining company directly.

Bullion Exchanges can help you

In the event you decided to purchase gold to diversify your portfolio, then the experienced team at Bullion Exchanges is here to assist. By working with us, you will be doing business with a reliable, accredited and reputable partner.  

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