6 Easy Ways to Invest in Gold
It’s hard to find the currency that’s been as stable as gold since the times humanity remembers itself. For thousands of years gold coins and jewelry have been the most reliable way to perform the trade. Even now a great amount of paper currencies corresponds to a set weight in gold. History shows that when the value of certain currency reduces, the value of gold tends to experience the positive growth. It doesn’t mean, though, that it’s easy to make millions on the correlation, rather to secure your finances by investing in gold.
There are two main ways to invest in gold: directly and indirectly.
Direct investment in gold means that you’re buying physical gold in any form, as coins, bullion or jewelry.
1. Gold coins. A very popular way to invest in gold, especially if you’re fond of numismatics. Some gold coins are valuable solely for the metal used in them, others may possess the special collector status, as, for example, Saint Gaudens Double Eagle, Canadian Maple Leaf coin or the United States American Gold Eagle. Coin shops, collectors and private dealers are the main places to find gold coins for sale. They also provide the exclusive opportunity to finally perform the scene from childhood movies and cartoons and try the real gold coin on your tooth.
2. Gold bullion. Classically referred to as bars of gold, in fact they may be of different sizes. What is really important for a gold bullion to be considered as an investment is the certificate stating its weight and purity and a serial number stamped on it for security purposes. The preferred purity of gold for investment purposes should reach 21k or higher. The reason we all have the strong association with gold bars and banks is understandable when we realize that along with possession of gold bullion you come to require a safe place to store it. The most common choices are the safety deposit boxes or in-home safe. Banks willingly provide the possibility to buy gold bullion as well as bank cells for a small fee to store it.
3. Gold jewelry. This type of direct investment involves the purchase of gold jewelry of 14k purity and higher. It is the most popular way to convert your money into secure assets, as gold jewelry makes around 50% of global production.
Only high-end gold jewelry of 14k purity or more and of good quality can be considered an investment, being aware of it Its Hot offers a great variety of gold jewelry items to buy as the commodity investment or just for aesthetic purposes. The benefits of gold jewelry are not only in its ability to become lucrative assets in times of soaring inflation, but its practical value. You can enjoy the beauty of gold jewelry while not bothering with the storage place for it. Instead, you can use it as a part of your image, show it off, effectively completing your outfits with elegant gold pieces. Just remember to save the receipts and certificates if you’re going to resale the jewelry later to make the evaluation process easier.
As to indirect gold investments, they include buying gold-related securities and funds that buy gold on your behalf.
1. Gold exchange-traded funds and mutual funds. Those accounts perform purchases and sales of gold for you. You don’t need to be directly involved in the process while being able to benefit from fluctuations of prices. Tough, sometimes you won’t be able to invest purely in gold as those funds often trade in other commodities as well. You don’t need to think about the cost of direct investment and gold storage, but there are still fees you need to pay for the service.
2. Gold mining stocks. You can buy a share in a gold-mining company. In such a way you’re getting rather pleasant monthly dividends along with the profit off the metal.
3. Gold futures. The contract between a buyer and a seller, where they agree to buy/sell gold in a specific time in the future for a specific amount of money. It means that a buyer gets either the physical gold or its relevant currency equivalent for the price stated in the agreement.
Investing in gold is not hard, but you need to carefully set your goals and understand the risks. Gold is a rather stable asset and in terms of resisting the high inflation it proves very reliable. Considering the market volatility and all the recent events gold managed to end the first half of 2022 0.6% higher with the price around $1,817 per ounce. It proves just how safe the gold can be as the investment, but you shouldn’t expect to hit the jackpot as the times of gold rush are gone for good.
For generations gold has been a marker of wealth and a symbol of stability, and it’s highly unlikely that it’ll change anytime soon. The long-term value of this commodity makes the investors to resort to its service as to safe haven at times of severe market volatility. However, it’s important to understand that no one will ever give you a 100% that tomorrow the things will remain for the gold industry the way as they are today or better. Just like any other financial asset, gold endures changes in supply and demand, thus, the price may go either up or down under the pressure of different factors, that sometimes don’t have obvious connections to gold itself.
The financial experts agree that gold is a good investment, though not in a great amount. It may work as a hedge against the inflation, but you shouldn’t rely too much on it and put all your eggs in one basket. Better make the gold a small percentage of your total assets. You may, as an option, combine the safety of investment in gold with the joy of wearing beautiful jewelry. There’s a chance that there won’t be a need to sell it and you’ll be able to pass it down as the nice heirloom.