There are many ways to invest in gold, including buying gold in bars and coins, using a low-cost stock broker, investing in gold mining companies, and even purchasing ETFs. However, if you’re a beginner, you should first decide how much money you’re willing to invest and the risk level you’re willing to accept. Then, you can choose the type of investment that suits your needs and wants best.
Buying gold through a low-cost stock broker
There are many ways to invest in gold. One popular method is exchange-traded funds (ETFs), which pool money from many investors and are traded like stocks. Some gold ETFs include SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and Aberdeen Standard Physical -Gold Shares ETF. ETFs are not limited to physical gold, and you can also invest in ETFs through low-cost stock brokers.
Investing in gold ETFs
While physical gold can be a volatile and expensive asset, investing in gold through ETFs offers investors an easier way to diversify their portfolio. Since the price of gold does not fluctuate very much, these funds provide exposure to the gold market and are typically more profitable than other gold-based investments. While they come with a small brokerage fee, these charges are often less than one percent. When selecting a gold ETF, it is important to shop around and find the best fund.
Investing in gold mining companies
While Warren Buffet isn’t a gold investor, he recently made a decision to invest a half-billion dollars into gold mining company Barrick. Regardless of your personal preferences, investing in gold in mining companies can provide you with a variety of benefits. Before you invest in gold, however, you should seek financial advice from a qualified advisor. You can also find financial advisers at institutions like Standard Chartered. When deciding how much to invest, consider your risk profile, your investment horizon and current market conditions.
Buying gold in bars or coins
Investing in gold bars or coins is one of the most efficient ways to hedge your bets and diversify your portfolio. Both coins and bars come with different premiums, so it’s important to weigh your options before investing. For resale purposes, consider buying smaller quantities of gold than you plan to keep for a long time. Buying bars in larger quantities can increase your investment value by several times.
Investing in gold futures
If you are new to investing, you might wonder how to get started with investing in gold futures. Gold futures are a financial contract in which you agree to purchase the asset from another party at a certain price and date in the future. Buying gold futures is one way to diversify your portfolio and reduce your overall risk. Benzinga’s Best Online Brokers for ETF Investing can help you get started.