There are many investors who are skeptical about gold investment and holding gold in portfolio. This is due to volatility of gold price. However experts still suggest adding gold for providing diversification benefits and act as a hedge against inflation. This can be proven by the fact that gold in recent years has been one of top investments in recent years. The good reason is that there is steady rise in the value of gold especially in recent years. In addition, gold unlike other assets does not drastically fall when markets hit lows.
Ways of making gold investments
If you are having an interest to invest in gold, you may either do it indirectly and directly. The direct gold investment method is to buy gold bullion or gold coins. Simply put, you will physically own certain amount of the precious metal. Indirect purchase stands for investments like gold exchange traded funds, certifications and accounts. These are commonly tied to present gold price.
Experts advise beginners to begin investing in gold bullion or gold coins since they only have minimal risk and are easy to find. After making a purchase, you can even ask to receive them by mail. When you want to buy bulk gold, consider gold bars as they are cheaper to buy in large quantities. You only have to prepare a safe way to transport them because they are bulky.
All the same gold investment is safe way to secure savings for small investors or those without previous experience in investing and professional investors as well. Investing in gold almost has a guarantee to make profits. For the last 10 years, gold prices have tripled and continue of rising.
It is important that you do the following before you invest in gold;
Choose percentage of savings/portfolio
First decide the savings or investment portfolio that you want to set aside for investing in precious metals. This is something that you decide yourself. Remember to count all the scenarios that may take place if you need your savings. It is wise to only invest part of your savings where you will not need them in near future. That is all preparation you need to make for investing in gold before you start investing in one of these options:
Investing in real gold
For this gold investing option, you have to buy actual gold in gold bars or gold coins. This is what is also referred to as gold bullion. You may store gold in safe deposit at a bank of your choice just like you bank cash. You may also keep it in your home safe. The only downsides to keeping real gold are the possibility of getting stolen and the hassle to sell it. The advantage of investing in real gold is that you will always have another currency (gold in accepted as universal currency) for paying in scenarios that might need it.
Gold IRA Investment
This option is one of the most widespread in the United States, where people either rollover their 401k into gold IRA, or just buy physical gold for IRA account. This type of investment allows to protect yourself from the risks of currency crashes and other economy disasters. In order to invest in gold IRA, you need to address special gold IRA companies that will help you proceed with the whole process.
Usually, you only pay small fees for opening the IRA account, and the custodian provides services of storing the physical gold that belongs in your retirement account.
Investing in shares
The common option of gold investment is to set up brokerage account with gold ETF. This is an easy fast way to buy and sell gold. The biggest advantage when you use exchange transfer fund is that it presents you with opportunity to mage gold like you would do when buying or selling stock.
When you choose to gold investment in real gold, it can be found any certified seller. All you need to ensure is that the gold is real and not over priced. There are different places worldwide where you buy gold bullions, coins or gold bars. Fort gold shares set up standard brokerage account. This is the account that you will use to buy or sell gold ETF shares.
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