Methods of investing in gold
Gold is always regarded as a good investment vehicle, especially for high inflation and economic problems. Making this precious metal a good investment vehicle is its relative price stability and almost constant growth over time. More to allocate a portion of your portfolio to gold to ensure the diversity of your portfolio and hedge the portfolio risk from price volatility
There are many different approaches, including direct and indirect investment gold. Each approach has its own strengths and weaknesses, and there are many factors to consider before you embrace any approach, including your portfolio size, risk tolerance, involved venture capital, investment experience, and the active portfolio you are tracking Management strategy.
1. Buy gold bullion.
Includes gold and gold bars invested in certification and standardization. The idea is simple and you will get the value of the gold you pay for the amount that should be offered to you when you sell for a while. You will have precious metals directly. But disadvantages include insurance and storage costs. Inflation and price changes can have a much worse impact on your investment
This is a very good way to invest in gold only when you are crazy about these works of art. From the investor's point of view, who wants to invest in portfolio growth, investment in gold jewelry is an expensive option. Jewelry items are usually more expensive than the underlying metal price. But investment jewelry in countries such as India is very popular.
3. Gold ETF (Gold ETF)
ETFs are becoming highly popular trading tools. The gold ETF holding gold as its underlying asset is an excellent indirect investment. ETFs are traded on the exchange in the same manner as stocks, and their portfolios are fixed. They are cost-effective liquid trading tools, which means that you can buy or sell at any time. Investing in gold ETFs does not require investment knowledge, but you must first look for fund management policies to show "it will work for you"
4. Gold Mutual Funds
Another form of indirect investment. Mutual Fund Buying, holding and selling of gold stock stocks – gold mining and trading company stock. Investors can buy shares of these mutual funds to gain future returns. Investment knowledge is limited, but investors must choose different asset management strategies from different mutual funds
5. Gold Futures and Gold Options
Gold futures may be the most cost-effective way to invest in gold. With small capital investments, you can control large futures contracts by effectively leveraging trading profits. Trading futures also include low commissions. Gold options are also powerful, cost-effective investment instruments that can be used to hold the desired amount of gold in the future and also hedge the price movements of the gold / jewelry / stocks you hold. However, investment and profit from futures and options require good trade knowledge and experience
6. Investing in Gold Stocks
Investing in gold mining and exploration The company's stock is an indirect investment. But it requires good trading knowledge and stock screening capabilities.
7. Gold Accumulations Plans
These are accounts that are set aside for the purchase of precious metals each month for a fixed amount of money. When the account is closed, investors can have gold as a bar or coin. The advantage is that with a fixed amount of monthly allocations, more metal can lead to lower prices and less price increases. But this is a long-term process (at least a year), you should have a stable monthly income to feed these accounts