Investing in Gold
The gold market has been very attractive to investors because of the incredible returns that it has generated over the past few years. Many investors are still looking to get into the gold market because they believe that the price of the precious metal is headed higher. There are a number of ways for metals investors to get a piece of the gold market. Here are a few of them.
Gold Coins
Gold coins are the easiest ways for investors to actually buy gold in a physical form. There are a number of websites and stores in which investors can visit to buy gold coins. Gold coins are more affordable than buying gold bars and can be easily stored in your home. The coins can be sold when the price appreciates to a level that you find acceptable.
Gold Bars
Gold bars may be the old fashioned way of holding gold but they are still available today. Companies like Goldline sell a number of different forms of gold bullion. Gold bars are sold in weights of 1 ounce or higher by gold dealers. The only drawback is that gold bars are expensive to buy because of their larger size and have to be physically stored in a safe location.
Gold Stocks
Gold stocks are a cheap way for investors to get access to the gold market and benefit from rising gold prices. Companies like Goldcorp have seen their stock prices take off since the price of gold crossed over $1,000 and ounce. Gold miners and refiners have been able to increase their bottom lines since gold prices have gone higher
Gold Funds
Sector specific mutual funds and exchange traded funds that invest in the precious metal have been increasing in the marketplace in recent years. Many gold funds tie themselves to the spot price of the precious metal so that investors can get the same return as the market price of gold.
All of these options are acceptable ways for investors to add a little gold to their portfolios. The best way for you to invest in gold will depend on your budget and investing preference.
Question – if gold prices are soaring, wouldn’t now NOT be the time to start investing in gold?
Jacob @ My Personal Finance Journey´s last blog post ..Guide to Managing Your Savings and Investments in the Internet Age
That’s a fair point. Generally it’s better to do the opposite of what the crowds are doing…for example, when the stock market is down many smart investors think it is a good time to buy because so many stocks are undervalued. The rush on gold has occurred largely because people are afraid to invest in stocks. The question is when will stocks turnaround? If stock prices remain volatile and more investors put money their money into gold, the price of gold would continue to rise.
That’s a good point. Thanks for the reply!
Jacob @ My Personal Finance Journey´s last blog post ..Yakezie Carnival – Examples of Selflessly Helping Others Throughout History – September 25th, 2011 Edition
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I would have to agree with you. Since the stock market has been declining, I’ve had many of my friends telling me that investing into gold is the best solution. I’ve been researching and researching on the best type of gold investment and I just happened to come across your post on gold. I was curious though, have you heard of the Swiss Gold Annuity? You didn’t mention it on your website, and there’s been a bit of a buzz on it online. What are your takes on it? Any opinions or concerns? Granted that they’re from a company based in Switzerland, are they trustworthy? The company mainly sells Swiss annuities but would you mind providing me with additional information? I’m close to buying one, but I would like to seek some advice as well. Any help would be greatly appreciated! Thanks in advance!
Filbert
What do you think about all of these “jewelry for gold” places?
I don’t think gold is going to collapse any time soon. With interest rates near zero and global economic uncertainty, gold will hold its value if not go up. It wont take much bad news to send gold even higher.
John@stockspayinghighdividends´s last blog post ..Stocks Paying High Dividends in Consumer Staples
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