Gold Investments

How To Invest In Gold

Investing in gold is a good idea as it ensures investors against currency debasement, inflation, and global uncertainty. If you want to know about the UK price of gold today or how to invest in gold, then it is good that you found this article. Here is how to invest in gold:

Gold Bullion

Most gold investors prefer having actual physical metals in their possession. The best thing about buying physical gold is that you are the direct owner and there is no intermediary between you, the investor and your gold investment.

You can store it in a bank safety deposit box, store it in your own home or look for a company that stores and trades in gold. If you decide to buy gold bullion or coins, try as much as possible to avoid big premiums. Ensure that you buy your gold as close to the spot price as possible. Remember that the higher the premium, then the higher the selling price of gold as you have to make a profit.

Gold mining stocks

The major challenge with investing directly in gold is that metal does not earn the investor income. However, gold mining stocks are active businesses and even though their prospects are linked to gold prices, mining companies can rise when their operations are successful.

However, these stocks have added risks beyond investing in bullion. Even if the price of gold rises, the price of a mining share can plunge in case a catastrophic event such as a mine accident occurs. Another problem is that when the price of gold falls, then some of the mining stocks can have a great downward volatility.

Gold ETFs

This method of investing in gold offers more liquidity and is ideal for those who don’t want to hold their gold directly. Gold ETFs enable you to buy or sell shares that represent a certain fraction of an ounce of gold anytime the stock market is opened.

The major advantage is that the transaction costs are usually lower compared to Gold Bullion investment. However, the major disadvantage is that this form of investing in gold is that you have no actual claim to the physical gold owned by the ETF.