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Looking to Invest in Gold?

By Edited Jun 13, 2015 0 0

Curious about how to invest in gold? With the recent rise in the price of gold, many sophisticated and retail investors alike have been looking to allocate a portion of their investments to the shiny rock. If you are looking to invest in gold there are a number of options to consider. Even if you don't take advantage of all of them, it doesn't hurt to know a little about them.

Gold Bullion
Some investors want to invest in the thing. This is gold that you can touch, feel and look at. If you want to invest in physical gold, the best way to do so is to buy investment-grade gold, which can be easily obtained in bars or coins (jewelry generally isn't viewed as investment-grade).

You can buy gold bullion directly from the mint, from bank or even from coin collectors. There are also plenty of places where you can buy gold online. If you are buying actual gold you can expect to pay a slight premium to the current gold price as a fee. If it is a coin, the markup can be higher, especially for rarer coins which carry additional value beyond the value of the gold itself.

Since gold is so valuable you may not want to physically hold or keep the gold you invest in. A solution to this option is to make and investment through companies like bullionvault.com where you can purchase actual gold, but it is kept at BullionVault's armed guard security facility (which is available to you if you wish). It is a perfect choice for someone that wants to own real gold, but doesn't want to deal with how to store and protect it.

Gold Stock
An alternative to buying actual gold is to invest in gold through the stock market via mutual funds or gold mining companies. Gold mutual funds are generally diversified gold investments and could be made of a collection of gold securities, gold futures, and gold ETFs.

Another option is to invest directly in gold mining stocks. The thought being that if the price of gold rises, so should be the price of the gold mining stocks since their business should presumably be more valuable and more profitable. However, just like any other industry, some gold mining companies perform better than others. Different firms operate in different locations, and have different levels of profitability so it is probably worth your time to consult an advisor or do some independent research on your own.

Gold Jewelry
You probably already have some gold jewelry so your investment in gold has already begun! While jewelry isn't traditionally looked as invest-grade, it is still gold and it still has value. If you have gold jewelry, it is important to know both what the karat weight it is and how much hold is actually in the jewelry itself, as that can have the greatest impact on value.

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