People say that all that glitters is gold, and in the eyes of gold buyers and investors, the saying is inherently true. Since gold is considered one of the best and most consistent ways to expand an investment portfolio, more and more people are turning to the liquid yellow solution. Once an individual makes a decision to invest in gold, the only question left is, “How?” Investment advisors have brainstormed a few different tactics throughout the years, of the best ways to get your gold fix.
1. Physical Gold
Some people find having a direct ownership of physical gold to be one of the most fulfilling ways to invest in gold. Many direct owners take pride in their possession of bullion in bar or coin forms. Bars are more suited for riskier investors because of its slight tendency to fluctuate in spot prices. For a gold backed IRA, gold bars must be 24 karats and may range from 1 to 400 ounces in weight. For investors looking for a more secure and stable path, gold and other precious metal coins may be a better fit. Similar to the bars, most coins accepted are 24 karats. However, the American Gold Eagle coins registered at 22 karats are also deemed acceptable. Gold is used as a defensive tactic against the losses that may occur when dealing with stocks and bonds.
2. Gold ETFs
Another way to invest is through a gold exchange-traded fund, otherwise known as an ETF. ETFs function similarly to regular stocks in that they operate and trade under a stock exchange as a mutual fund. The portfolio of the ETF is determined in advance and remains unchangeable. In the United States, two gold trade ETFs maintain gold bullion as their only asset. These two ETFs are under either “GLD” for the streetTRACKS Gold Trust and “IAU” for the iShares COMEX Gold Trust. Both allow logical and fully functional strategies to hold an investment portfolio that handles gold.
3. Gold Mutual Funds
People that would like to be involved in gold investment, but are wary when it comes to investing in physical gold, can turn to gold mutual funds. These funds are composed of gold stock portfolios. These gold stocks are not actual gold properties, but are companies that may handle gold. A senior gold stock is a well-established business that has a lucrative record for many years. Choosing to utilize a gold mutual fund is considered a reasonable and conventional way to metaphorically dip your feet into the pool of gold investments.
4. Junior Gold Stocks
A riskier version of senior gold stocks is junior gold stocks. Although these stocks may produce the occasional three-digit profit, the chances for greater loss are also a possibility. Junior gold stocks are intended for the risk takers that can afford to deal with the ups and downs of the market. Investors looking for a solid fund to partake in would be better off investing in senior gold stocks within gold mutual funds.
When deciding on the numerous ways to buy gold, make sure to do plenty of research on each method. Like always, gold buying and advising companies are available to the general public if you cannot decide on the best way to buy gold. Specialized plans of entering the gold buying and investing industry can be created to ensure all your money is well spent.