There are many opportunities to invest in gold, including bullion (i.e., gold bars), mutual funds, futures, mining companies, and jewelry. With few exceptions, only bullion, futures, and a handful of specialty funds provide a direct investment opportunity in gold. Other investments derive part of their value from other sources, following several analyses from best online casino usa.
Gold Bullions
Gold bullion refers to any form of pure gold, with the most common example being gold bars. Gold bars must be certified for weight and purity, and will typically have a serial number attached for security reasons. Gold bars can vary in size, and it doesn’t take much to be considered valuable. There are a few drawbacks to purchasing gold bullions, as you will typically want a secure location and insurance to secure the investment. Additionally, gold bullions can be a difficult asset to buy and sell as you have to identify buyers ready to purchase in whatever sized bar you have the asset in. That being said, many investors find this method to be highly rewarding and one of the best ways to invest in gold.
- Gold Coins
The most common gold coins weigh one or two ounces, though half-ounce and quarter-ounce coins are also available. Collectible coins, such as South African Krugerrands, Canadian Maple Leafs and American Gold Eagles, are the most widely available type of gold coins. Some dealers even sell blanks and damaged or worn coins. Gold coin prices may not entirely align with their gold content, though. In-demand collectable coins frequently trade at a premium. A one-ounce American Gold Eagle coin, for example, retails for just over $2,000 in mid-September 2020. That’s almost a 5% markup over a comparable amount of gold bullion. You may be able to find better deals on gold coins from local collectors or pawn shops, but it’s still typically safer to make purchases using a reputable, licensed dealer.
- Gold Jewelry
Gold jewelry is probably the most frequently bought and sold form of gold investment, though you may not even think of it as such. In actuality, gold jewelry is highly beginner-friendly because it is so easy to acquire. According to Investopedia, about 49 percent of global gold production is used to make jewelry. Generally, any piece of jewelry at 14k or higher is considered an investment in gold. While it is relatively simple to obtain, there are some drawbacks to consider. In some cases, gold has a questionable resale value. This means it may be difficult to identify a buyer and sell your jewelry for a profit, or you can just multiply your money for at casino en ligne argent reel.
- Gold ETFs & Mutual Funds
Gold exchange-traded funds (ETFs) and mutual funds are accounts that purchase gold on an investor’s behalf. The shares that make up these funds each represent a fixed amount of gold and can be bought and sold like stocks. This is one of the best ways to invest in gold as ETFs and mutual funds allow investors to work with gold, without dealing with the costs of physical ownership (like security or gold insurance). There are fees associated with buying and selling gold through ETFs or mutual funds, but they are often much lower when compared to the management of other assets. Note that ETFs and mutual funds dealing with gold often invest in other commodities as well, meaning you will rarely find a firm that deals strictly with gold. This can be beneficial if your goal is to diversify, though it may require learning about other markets as well as gold. Be prepared to research different funds when considering ETFs or mutual funds for your gold investment.
- Gold Futures
Simply put, gold futures are contracts to buy and sell gold at a certain point in time. Each contract represents a certain amount of gold, and depending on the specifications can pay out in either a dollar amount or the physical gold. Gold futures can be very large, making this a strategy best suited to investors with the capital to purchase high-valued contracts. There are also options on gold futures to consider. This provides investors the option to purchase a futures contract for a preset price at a certain point in time. Options can help buyers leverage their initial investment, though they are required to pay the underlying value of the gold to fully own the option. Both gold futures and options are considered to be volatile — making them more difficult to break into and manage when compared to other forms of gold investments.
