If you have been asking yourself should I invest in gold this past year, now is your chance. With the Federal Reserve just recently announcing it’s raising its expectations for inflation, investing in gold is an excellent way to diversify your portfolio and manage risk.
However, investing in gold can also be confusing with so many different investment vehicles and different ways to invest in the precious metal.
If you are wondering the best way to invest in gold, keep reading this guide and discover how to invest in gold and which way is the best way for you.
1. Physical Gold
One of the easiest ways of investing in gold is simply buying the physical metal itself and holding onto it. There are several different ways you could go about this.
First, you should decide which form of gold you would like to obtain. There are two primary forms, these include:
- Gold bars or,
- Gold coins
Investing in gold coins or gold bars can be a great idea so long as you have somewhere to store it. Storing gold can sometimes be costly if you don’t have the proper equipment. You can buy and store gold just like you would any other precious metal, such as platinum. See this page for more information on investing in platinum.
Different gold coins will sell for different amounts, making it essential to research beforehand and determine which coin is best for investing.
2. Gold Mining Stocks
Rather than buying the gold yourself and dealing with the storage costs associated with it, you can always opt to invest in gold mining stocks.
Gold miners are the companies that go out and extract the gold from the earth and then turn around and sell it for a profit. Few different factors affect the price of gold mining stocks. These can include:
- The price of gold
- Current supply levels
- Cost of production
- And management
Investing in gold miners can be an excellent way to diversify your portfolio and protect it from economic downturns. Gold mining stocks have performed well over the past year as big-name investors like Warren Buffet have made considerable investments into it.
3. Gold Funds
If you don’t want to inherit the risk of investing in a single stock, you can instead invest in a gold fund and increase your exposure to gold.
Gold funds will generally consist of a few different types of gold holdings such as:
- Gold mining stocks
- Physical Gold
- And gold derivatives
Investing in a gold fund will increase your exposure to gold without relying on just one form or another. Gold funds can make reasonable investments when the fear of inflation is present in the economy.
How to Invest in Gold: Getting Started
Now that you know how to invest in gold stocks, it’s time to make your first investment in gold. Make sure to do your research and determine which style of investing is best for you. If you want to diversify your portfolio and protect it from economic downturns, gold is an excellent tool to help you.
To learn more about invest in gold and other helpful money tips, check out the rest of our blog!
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