Your Ultimate Guide on How to Invest in Gold Wisely

Gold is one of the oldest currencies to exist in time. And even with paper money being today’s method of payment, gold still remains as a good investment among money. Do you know how to invest in gold?

The permanence of gold’s value is still widely recognized today and it continues to grow in value with people having more options on the way they can own and invest in gold. If you plan to invest in gold, outlined below are the things you need to keep in mind. These are for the purpose of helping you choose wisely the type of gold that’s ideal for your needs and budget.

invest in gold precious metal

1. Buy bullion if you want direct ownership of gold

Bullion is the ultimate choice if you want to have direct ownership over your gold. It requires a higher initial investment since it is seen to be more valuable than other types of gold. Its stability makes it a better choice compared to other types of gold which are dependent on fees and price fluctuations which result from coins issued by government institutions.

So if you have a higher budget, gold bullion should be on top of your list. Keep in mind that after you buy gold bullion in Adelaide, or in your local area perhaps, you will need to find a secure place to hide your gold.

2. Choose coins if you want the convenience

Unlike gold bullion, gold coins are easier to acquire as not only are they cheaper but they’re also convenient to store. Gold coins are minted from pure metals and are issued through government-backed mints. The best kinds of gold coins to invest in are liquid one-ounce South African Krugerrands, Canadian Maple Leafs, and American Eagles.

You can purchase gold coins through a network of dealers which includes brokerage companies, precious metal firms, coin dealers, wholesalers, and some select banks.

3. Mutual funds are a worry-free investment

Any financial investment is a way to lessen your money worries but if you want a hassle-free gold investment, gold mutual funds are your best option. Gold mutual funds come in the form of a portfolio of stocks involved with the mining, storage, and distribution of gold.

You also don’t need to have as much knowledge about gold when you’re handling gold mutual funds. They require less work since you move away from the principle of direct ownership, and they don’t take up physical space.

4. Gold exchange-traded funds for direct ownership but less risk

Gold exchange traded funds combines the benefit of direct ownership to gold while still being a mutual fund investment. They’re less risky compared to mutual funds since they belong to the stock market which offers a practical way to own gold in an investment portfolio.

5. Junior gold stocks are riskier

A riskier option would be junior gold stocks. They are dependent on mines that aren’t as established yet and has no guarantee of being productive. Because it plays on the exploration of relatively new gold mines, there is potential for high profits but there’s also greater potential for loss.

6. Wear gold jewelry first, invest in it second

Jewelry accounts for half of gold’s demand making it the most popular way of investing in gold. To invest in gold jewelry properly, you need to understand the karat amounts and how it affects the price and durability of your item. They are typically weighed in grams and the heavier it is, the more expensive the piece will be.

So whether you’re dealing with City Gold Bullion in Adelaide or on gold mutual funds, learning the nature of each type of gold investment should help you make a choice on the kind of gold that’s ideal for your needs.

It’s important to look at gold jewelry primarily as an accessory and second as an investment. You also run the risk of losing money on your piece if you’re selling it at the wrong time.

Did you have other thoughts on investing in gold? Let us know in the comments.

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan