Ultimate Guide to Investing in Gold

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What to Know When Investing in Gold

Before putting money into gold, it’s important to know a few gold-buying tips.

For one, make sure you’re purchasing gold from a valid company. Ask for a certificate of validation before buying or some other form of proof.

Also, it’s important to understand the different methods of gold investment. We’ll break them down later in this post, so know which one best fits your budget.

Finally, do some research on gold’s price. Make sure you’re not purchasing at a high point, for instance. If the asset is hitting a low, then make a point to purchase it before the price rises. Otherwise, wait for it to go back down before investing.

Popular Ways to Invest in Gold

With so many ways to invest in gold, we’re going to break down the most popular ones. That way, you can decide which is best for you.

Gold Bullion

Physical gold used to be the most popular way to invest. However, as technology has advanced, other methods have developed. Still, some people might want to invest in this classic way.

When investing in traditional gold, you can go to a mint or an exchange online to have it shipped to you. Just keep in mind you’ll have to pay for storage and shipping fees. Have a vault yourself or pay for it to be stored somewhere else. Just make sure you have a safe place to keep it.

In fact, bars and coins go up in demand when the global economy takes a hit. This is because no one can seize your assets, while governments can essentially make traditional currency useless. That autonomy is huge for some investors.

Gold Derivatives

Futures, options, and other derivatives are another popular choice for investors looking at gold. However, betting on futures specifically could cost you, even if the potential gains are quite high. Make sure you understand the investment space quite well before doing so.

That said, if you’ve invested in futures before and have done your research on gold, it’s entirely possible to see significant profits from derivatives. This option isn’t the most accessible, but there are some exchanges that offer it.

Gold-Backed Stablecoins

One of the more recent ways to invest in gold is cryptocurrency. More specifically, it’s in gold-backed stablecoins.

That’s right. There is cryptocurrency tied to the value of gold. Buying some is a lot less hassle than physical gold, largely because you avoid storage and shipping fees. Stablecoins also allow users to purchase hold anonymously, as the main focus of cryptocurrencies is privacy.

You can also request physical gold from most stablecoin providers if you change your mind and want physical. However, note that you’d have to prove your identity in this case.

Gold Mining Stocks

This is a bit of a different way to invest in gold – gold mining stocks. This involves you investing in companies that mine gold. It’s a little less risky than traditional gold investments.

After all, company stock performs differently than the price of gold. In fact, gold mining companies might work with other precious metals as well, increasing the group’s stock even if gold is down.

Companies can grow and experience other positive trends as well. If you’re new to investing, maybe put your money here before physical gold.

Why Invest in Gold?

While you’re aware of the different ways to invest in gold, you might be wondering why you should.

First off, gold is an ancient asset. It’s not something that will up and disappear anytime soon. That means it’s always safe for you to put money in.

That, and if you’re not a particularly risky investor, gold isn’t incredibly volatile. The price usually fluctuates at slower rates than other assets. This makes it a perfectly valid investment for new and risk-averse investors alike.

Diversifying your portfolio is always a good reason, too. And gold is often seen as a hedge for economic turmoil. If the economy is taking a hit, many invest in gold as a safe haven for their funds.

There are other reasons to invest in gold as well, but those should be more than convincing enough.