The absolute best way to invest in gold
Invest correctly in gold
Investing our hard-earned money in anything is a bit scary, but investing it in a valuable resource sounds like a good idea, right? Well, it can be a great idea when you understand how to invest properly. Most people want to run out and put their money in silver, gold or platinum because they are valuable. If I had to put my money on something it would be gold, it’s a bit more stable than silver and not as expensive as platinum. Here are some valuable tips on how to properly invest in gold.
Why invest in gold
Gold is a form of protection against inflation, currency devaluation and global uncertainty. Gold will always be valuable whether in money, jewelry or bullion. There will always be a value in it. Gold can also be easily obtained in its many forms. Gold is a precious metal that is mined all over the world and is valued by many for a status of power and wealth.
How to invest correctly
Buy gold physically at various prices. Buying gold coins, jewelry, and bullion is a great way to get started. You don’t want to pay high premiums for the gold you buy. You’ll want to buy it fairly close to the spot price. The spot price is the average purchase rate that a person can expect to pay per ounce of gold. Coin dealers and jewelers will add a premium to the spot price because they are buying at or just below the spot price and want to make money on it too.
To avoid being scammed when buying gold bars, coins or bullion, you’ll want to establish a solid reason why you want to invest in the first place. If you’re planning to make it a long-term investment, you’ll definitely want to buy gold at the closest possible spot price. If you want to buy gold to use as money, then buying smaller gold coins is the best idea for you.
ETFs are gold exchange traded funds, this is a popular way to get exposure to gold in your portfolio without having to store the heavy metal. Gold EFT tracks the spot price of gold. They will store your gold bullion somewhere and give investors access to several different types of gold.
For every gold EFT share you buy, you essentially own approximately 1/10th of an ounce of gold. Owning EFT does not mean that you actually own the precious metal, it just means that you own shares in a piece of gold. Having said that, many times EFTs can be sold short so that two people can own the same piece of gold.
Gold Miner Stocks
Investing in gold mining stocks is a riskier way to invest in gold, but it is still a popular option. Gold miners are risky because they trade with the broader stock market. If you go this route, make sure they have good management and inventory.
Don’t make the common mistake of buying small gold miners that are still in the exploratory stage. Buy from a well established and growing gold miner. In order for it to be effective, you must also purchase the appropriate number of shares. Buy in increments of 10 and get an idea of the miner you are investing in before investing heavily.
Investing in anything is complicated. You have to know the ins and outs beforehand or you could make an expensive investment. Not all EFT actions, gold bullion or gold miners are created equal. Each will have their own pros and cons. However, if I were to invest in gold, I would personally invest in gold bullion. While the market may be unstable, the piece of precious metal is more valuable than not communicating at all. I would just do my own research and find products that are easily obtainable and can keep up with supply and demand.