If you are looking to invest, gold is one of the most popular things to invest in. Having been the currency of choice for hundreds of years, there is a reason why it continues to retain its popularity. Gold tends to be a great hedge against inflation or currency fluctuations and it comes in many forms. No longer do you have to restrict yourself to purchasing gold in a physical form, now you can instead invest in shares of gold, gold exchange-traded funds, or other trading options. If you are looking for safe ways to invest in gold, we have put together a guide that should help get you on your way.
A gold ETF (exchange-traded fund) contains various assets to help them track the price of a benchmark index in gold. There are a few different types of ETF and it’s a good idea to look into all the different ones to see which is best for you. This could include Smart beta gold ETFs, Leveraged gold ETFs, Inverse gold ETFs and gold miner ETFs.
A gold mining stock is exactly that – a publicly-traded investment focused on gold. The companies mine and sell gold and you own stocks or shares in these different companies. When you have shares in mining stock, you will receive yearly dividends that can be profitable over time. There is a level of risk in that the mine could fail and cause the shares to become worthless, but it could also have a very good year where you make a lot of money.
Gold bullions are another form of gold that you can invest in. Gold bullion is defined as such because it is recognized as being at least 99.5% pure. Bullion can sometimes be considered legal tender and there are dedicated bullion banks out there. You can purchase and invest in bullion in its physical form such as through a gold bar or coin that you purchase from a dealer. You could invest in an exchange-traded fund (ETF) or you could look into buying a futures contract which is an agreement that you will buy or sell it at a price in the future.
As mentioned above, Gold Futures are standardized, exchange-traded contracts where you agree to purchase a set amount of gold at a set price on a set date. This offers the chance to invest without taking physical possession and is good if you want to buy and sell it fast.
These are just a few safe ways to invest in gold that ensure you are safe from inflation and other investing options. It can be a little volatile in the short term, however, you should find that over time gold holds its value well and is, therefore, a reliable asset to invest in. Take your time to consider which form of gold you wish to invest in depending on how much you wish to invest and what is your preferred method. There is no right or wrong option, it’s down to you to decide which is the best for you.