Aug
09

Invest in Gold – The Real Secrets To Investing In Gold

gold bar close up 150x150 Invest in Gold   The Real Secrets To Investing In Gold

Invest in Gold

Gold – it has seen an incredible rise in price over the past few years to unseen highs. And many people in fact believe that this rise will continue unabated for many years to come. But how can you invest in gold?

You can invest in gold in two ways – physically holding gold and buying gold backed assets, like shares in mining companies. They both have their pros and cons but so long as the price of the rare metal keeps increasing then either method will leave you wealthier than before.

Before we look at how to invest in gold, let’s take a quick look at why the gold price has ballooned in recent times with no end in sight:

1. We live in times of war – historically, during times of military conflicts the gold price has always remained strong.

2. We live in times of political and economic uncertainty – the world economy is teetering dangerously after many countries including the USA, the UK and most of Europe face debt mountains and regression of growth. When this happens, people invest in gold as it is seen as a safe haven.

So, investing in gold is most certainly a worthwhile pursuit if you wish to hedge against inflation and save for the future. Let’s see how.

Invest In Gold Through Holding Physical Gold

1. Buy gold coins – Buying gold coins is probably the best possible route to owning actual gold that can appreciate and probably the most recommended way to invest in gold. The advantage is more than just the underlying gold value. Coins are collectors items, so this by itself will add a further premium to the value of the coins in the future.

2. Buy gold bars – Buying gold bars as a way to invest in gold is about as good as coins, except they are not collectors items. However, you can get tricked into buying coins with poor gold value while bars are a safer option.

3. Buy jewelry – Gold jewelry is a good way of stocking up on gold, but it is very important that the gold be of a high standard, and be maintained in excellent condition.

Ways to invest in gold without actually owning the metal

1. Buy gold assets like quality stock mining companies. If you are able to read financial statements, you can pick mining stocks that you believe should do well in the future.

2. Buy gold based investment funds – for people who are not comfortable with picking their own stocks, an investment fund is the answer. Here specialist managers will pick and choose quality stocks that have gold exposure. This lowers your risk and increases your chance of being exposed to only the best stocks when you seek to invest in gold.

3. Learn to spread bet. With spread betting you can make shorter term profits (within days) of an increasing gold price. But, you must know how to spread bet as you can also end up losing money if you are careless.

As the gold price marches onwards, you can choose any or a mix of the above ways to invest in gold.

 

Related articles:

Buying Gold coins

Evaluating a Gold Mining Stock Investment

Investing in Gold

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