|
Getting your Trinity Audio player ready...
|
Gold investment is an inflation hedge that maintains or increases its value over a long period of time. It is a good investment that can be considered during this era.
Why Gold is a Good Investment:
Pros
- It can serve as a hedge against inflation
- A good way to diversify your portfolio
- Buying gold can provide a feeling of security
- Gold has intrinsic value
- It’s easy to buy and sell gold coins
Cons
- Storing gold can be expensive
- Dealers can charge a number of hidden fees
- Gold doesn’t pay interest or dividends
If you’re now considering to begin investing in gold, here are five great ways you can start.
1. Gold Mining Stocks
Gold retains its value, but it’s not going to earn you any money, which is the entire point of investing. Instead of purchasing physical gold, you’ll buy stocks of companies engaged in mining precious metals. However, this always comes with few risks. So you’ll need to be regularly aware of what’s going on with that company.
2. Gold Certificates
Gold certificates are another good way to investing without necessarily having to physically buy the gold and store it yourself. Basically, you buy a note issued by a company that owns and sells gold. The note isn’t issued for any specific type of gold, but the company verifies that it has the assets to back the note. However, you’ll need to select the company wisely. Otherwise, it could be easy to fall prey to scammers.
3. Physical Gold
You can buy gold bars, coins, or bullions from gold dealers either physically or online. Having a tangible asset can provide many people with a sense of security, and more control over their investment. If you purchase gold coins or bars, you’re going to have to decide carefully the company you choose to work with. Some dealers will mark up the price of gold heavily, so it can be challenging to tell if you’re really getting the best deal or not. And if you purchase physical gold, you’ll have to pay for storage costs to store it till when you’ll sell it again.
4. Gold mutual funds
A mutual fund allows you to own a portfolio of gold mining companies. It is a good way to diversify your portfolio, though the fees may be higher. However you’ll need to find a broker that you trust who can advise you on how to go about with it.
5. Gold Exchange-Traded Funds (ETFs)
This option provides you the opportunity to invest in gold without having to pay for storage costs. An ETF holds gold bullions at a storage facility and allows investors to buy shares of the fund. You can buy gold ETFs through brokerage firms.
