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. Gold prices tend to fluctuate, but keep in mind that safe-have assets tend to do well when the stock market is doing poorly. This is because gold has intrinsic value, and if the dollar or stocks are suffering, people put their money into gold to keep their assets as safe as possible. Read more to learn how to invest in gold.

Tips for investing in gold

If you're a first-time buyer trying to figure out how to invest in gold, then it is highly advisable to consult with an analyst. Ideally, and if your budget allows it, you should hire a consultant who specializes in gold investments full-time. However, if you prefer 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. You do not want to go into debt over precious metals investing.

  • It's preferable to buy small ingots and coins; they're easier to store and can be sold easier (aka, they are more liquid.)

  • Gold bullion products are an everlasting and often risk-free investment as long as you buy from a reputable company. You do not want to get hoodwinked by counterfeit products!

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 more direct exposure to gold than this. When you do buy gold, it is worth noting that you should also have a good place to safely store precious metals.

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.

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. Choose carefully when you want to invest in gold stocks.

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, similar to a regular stock. It’s important to note that ETFs values are fixed, meaning they do not change, so 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.

These are all methods in which you can invest in gold, but it is up to you to determine the right course of action for yourself. Many people, including Goldman Sachs, recommend gold as a safe-haven asset to protect yourself during times of market volatility and to hedge your investment portfolio. So, consider investing in physical gold little by little to protect and hedge your assets. Most people suggest anywhere from 5-10%, or even as high as 20%, of your investment portfolio, should be gold or other precious metals. But, especially if you are new to gold investing, you don’t have to do this alone.

Bullion Exchanges can help you

In the event you decided to invest in gold bullion to diversify your portfolio, then the experienced team here at Bullion Exchanges is here to assist. By working with us, you will be doing business with a reliable, accredited, and reputable partner. Take advantage of our deals, and feel free to contact us if you have any questions about our products and services.