Does the gold investment still pay?
Do you want to invest in gold but know nothing about it? Then you have come to the right place as there is a lot you need to know. First, tell what comes in your mind when you think of gold? Is it 12-karat gold jewelry or a gold brick? Or are you talking about the gold coins that were used in history? In the past, the economy was dependent on gold. But these days our economy does not depend on it. Anyhow, gold is still a good investment.
How to Invest in Gold
One of the reasons that make the gold a good investment is its limited supply. Moreover, the value of gold is still the same means that what you can buy from gold in the past is the same in the present. For example, the price of the goat in the past was two gold coins, then you can still buy a goat from two gold coins in the present. That makes it a good investment and people choose to invest in gold rather than currencies. Want to buy gold (coin or brick) is not difficult, an average investor can do this.
There are three ways to invest in gold:
- Physical gold
- Mining Stocks
- Gold exchange-traded funds (ETFs)
Using this type of investment, you do not need to buy real gold or store it. Moreover, you do not need to worry that It will be stolen. If you want to sell it, you can do it any time using a discount broker. Moreover, you can include gold ETFs in your Roth Ira to grow your earnings tax-free.
It is an indirect way to invest in gold. Actually, in this type, your way of investment is through mining companies. You need to buy stocks or mutual fund of a mining company that focuses on mining this metal.
If you do not want to invest in virtual gold then you can go to the market and buy real gold. This gold can be in many forms such as coins and bricks.
How to Buy Physical Gold?
Well! Buying gold coins is not as easy as you are buying your groceries. Some of the companies allow you to buy gold coins online and some sites allow you to invest in trading platforms. Both of these options have their advantages and disadvantages. If you are buying directly from the dealer it will increase the security and will cut out the cost of middlemen. Before buying gold from any dealer, you need to do your homework as not all the dealers are the same.
Moreover, there are different kinds of gold coins available that are produced by different government mints. They all have their own purities and weights. So, you need to make sure to pay the amount equal to the weight of the coin. Canadian Maple Leaf coin, South African Kruggerand coins, and American Eagle are the most popular coins.