Ways To Invest In Gold

golg investing alternativesThere 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

invest in gold IRAThis 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.

Real investing

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.

If you are interested in one of the companies that help you to invest in gold, read Regal Assets review here.

What Should You Know Before Investing In Gold?

Gold investment is not a new concept and has had profitable outcome for a very long time. Gold has been a way of wealth storage for over 3,000 years. The reason is that gold is rare. Today, it is even more valuable because it is becoming harder to find and mine yet more people now know its value and want to invest in it. Gold is rare 6 times more than platinum and rarer than silver by 18 times thereby making it to be valued those other precious metals. Gold is also precious because:

  • It is almost impossible to destroy
  • It does not rust, decay or rust
  • It is not affected by hydrogen sulfide or oxygen
  • It does not melt easily  unless heated up to more than 1063 degrees Celsius
  • Is not dissolved by anything except cyanide

Reason to buy Gold

Majority of private investors who go for gold investment see it as insurance against bad policy by central banks and financial instability. The strongest appeal of gold is when real returns on bonds and cash are negative and going down regardless of whether interest rates are increasing. Prudent gold investors make sure that they only pay lowest costs when buying and can therefore quickly sell their gold still getting full value when circumstances change.

If you want to invest in gold, it is wise to read about market analysis, gold price commentary, investment research and forecasts. There are always articles by leading market commentators on various platforms.  Technology has mad it even easier to get gold investment reviews and tips. You may subscribe to be receiving market update email in your inbox every business day. When you read widely about gold you will understand how the market functions and be able to maker informed decisions when you want to do buy gold:

  • At best prices in the market
  • That you will  directly own as personal property without going through complex and expensive investment vehicle that will  cost you  high fees
  • Which is safe , economically stores and insured in the professional bullion markets such as Switzerland, Zurich , London, New York or Singapore
  • That is easy to sell at full time when you want to

Investing in physical gold

buying gold for investmentInvesting in direct ownership of physical gold will give you certain psychological satisfaction because you are able to physically handle the metal you invested in. Gold investing is not like stocks that give you legal share in a company when you directly buy physical, you will be able to handle it.  It is exciting to see and touch it as it   uplifts you psychologically because of the feeling that you own one of the most valuable things.

Well, everyone would want to feel that but owning gold directly also has a downside. When you keep gold in physical form, you must be worried about thieves. If you know your gold bullion is valuable, it is not in doubt that other people will find it even more valuable and would want to get it away from you without making any gold investment.

Buying physical gold therefore comes with added cost of investing in secure safe or charges to have the gold stored somewhere safe. To be on the safer side, you must get proper insurance for the bullion investment.

Selling physical gold will cost you some assay fees as a guarantee for the company you are selling the gold to that the bullion is real and pure. This is because the common way of selling gold is through companies that buy and sell it after they liquidate.

There is also the psychological cost because you keep on worrying about robbery or an occurrence that would lead to destruction of your gold.

What Are The Forms And Uses Of Gold?

When making gold investment, you should know as much as possible about the precious metal. The first is to understand what gold is. It is a shiny, malleable, soft precious metal occurring naturally in the earth. It is a bright yellow metal whose symbol is AU on chart of chemical elements. Gold does not oxidize in water or air. It is also resistant to individual acids and corrosion.

These and many other elements make gold a valuable product and therefore you cannot go wrong when you invest in it. Apart from aesthetics, gold has attributes that are not existent in other precious metals.

Gold investment will always have high unequalled potential for returns because it has numerous uses including:

  • Jewelry making
  • Dentistry
  • Artworks
  • X-ray technology
  • Treatment of grievous muscle and joint problems caused by rheumatoid arthritis
  • Treating brain degradation conditions such as parkinson’s disease
  • Improving IQ by up to 35%  when administered  orally under the tongue for one or two months

Gold is also use in making numerous other products. 

Calculation of gold

Troy ounces are the calculation for gold. Try ounce is based on British imperial weights and measures system.  It weighs slightly more than US ounce (avoirdupois) which is defined as series of weight units built upon pound of 16 ounces and ounce of 16 drams. A troy ounce is therefore equivalent to 1.09714 avoirdupois ounces or 31.1034768 grams.

Gold quality is determined by its purity. There is minimum market purity standard for each precious metal sold or bought. Before making gold investment, you should know that the purity of gold can be defined using karat (parts of gold/24), fitness (gold parts per 1000) or percent (gold parts per 100). For instance 24K=100 per cent=1000 fine.  However it is unlikely that there is a metal which is 100% pure hence it is accurate to say 24K=99.9%. This means that it is 999 fine.

Ways of investing in gold

There are different strategies to use if you want to want to make gold investment. There are various types of available transactions for investing. Some of the examples in which you can invest are to execute spot gold transaction, sell or purchase gold futures. You may also acquire shares of gold exchange traded product. This is referred to as exchange traded fund (ETF). It is important for you to comprehend terms of transaction when you buy through an ETF, mutual fund kind financial product or stock.

Every fund has its special policies that could be unfavorable to you. Before you purchase as whether underlying gold actually exists and who it belongs to. There are instances of double counting physical bars.  In order to be sure about your gold investment, inquire whether you own the asset and it is possible to take possession of the gold or it will be its value in price shown on paper from that specific broker.

 There should be an option because there are people who prefer to hold coins. Always establish if there are some costs involved with your chosen method of investing beforehand.

Forms of gold

There are many forms in which you can find gold. It is available in bullion coins, gold bars and ingots. Coins are round shaped. They are assortment of sizes, purity and fashions. Before making gold investment you should know that they are made according to detailed specifications given by governments of different countries. Companies that make gold coins will regularly produce memorable editions as collector items or for investment purpose.

 Gold bars are categorized as cast or minted depending on the way of manufacturing.  Minted bars are those produced by cutting gold to specific dimensions from flat gold pieces. The bars are then pressed with the desired markings. Ingots are casted from molten gold poured into mold with desired markings already in mold.