Do you worry that a low a budget can hinder you from investing in gold? If you're looking for the best way to invest in gold when you’re on a tight budget, I'll offer you some tips that can potentially keep you in the game.
Unlike currencies, gold will not depreciate in value. The fact that you are on a “Ramen budget” is a clear indication you need an investment that will bring profits and protect you from crises that can affect the economy in future. So what do you do if you're on a tight budget?
In today’s gold stock market, there are small bars of gold, each around 10g and starting with one of these enables you to begin investing in gold. But on a practical level, how do you begin to get your share of this highly valuable metal?
A convenient and prudent way to begin is to start having funds deducted from your pay check before it gets into your hands. It’s all about starting with the little that you have and with time it will accumulate.
Invest in Gold Coins & Jewelry
Buying individual coins is affordable and their value may potentially increase when the market price of gold goes up. Using this strategy, you'll be buying small amounts of gold and depending on which one(s) you select i.e. gold coins or jewelry, it can be pretty affordable for anyone on a strict budget.
Using mutual funds you can invest in gold through a company that mines and sells gold. The only thing you have to do is choose a firm that is well established in gold mining. Check the amount of gold they produce annually to get a gauge on how stable their funds will be going forward.
Exchange Traded Funds
This is another simple way to invest in gold. depending on who you ask, some might say that it is actually one of the best ways to invest in gold if you are on a tight budget. The funds are traded on the stock exchange but with a fixed portfolio. The exchange traded funds, also known as ETFs, use the bullion as the asset. Investors become part of the gold bullion market easily and there's no need to deliver gold physically.
Junior stocks are not for the fainthearted because they come with risks. On the other hand, they are speculative and mostly not linked to any productive mines. As an investor, you have to accept and be ready to undertake the risks of losing money; however, it can also give you good profits. They remain the best place to buy gold at low prices.
Consult a Professional in Gold Investment
The internet has plenty of information about the best way to invest in gold and even though it’s helpful, it cannot be trusted 100%. Consult a well known financial advisor. It is possible to find one with affordable fees especially those seeking to build their portfolio.
When Investing in Gold - Do Your Homework
When doing business with a new company, start by checking their profile in Better Business Bureau where you will see the reviews and complaints lodged against them. The solutions offered to complainants also give you some insight into the company's ethos. If there are consistent complaints from clients, that’s a red flag, run!
The firm(s) you choose to work with should have a good record and should ideally have been in the business for some time. Avoid investing in any company where you are only told about the golden opportunities. A good firm must show commitment by answering all your questions and telling you what is most likely to happen in the future.
Gold is regarded as wealth and its value can potentially remain unaltered during volatile times. This makes it one of the safest ways to invest. It saves the investor from huge losses that can happen in the stock market.
However, as a beginner one of the wisest ways to invest in gold is to always start small especially when your budget doesn't allow large investments. It provides necessary balancing in your investment.
If you need some guidance, there's a great webinar by wealth manager Minesh Bhindi which takes you through the steps on how to get some passive income through investing in gold and silver. I myself have gained some knowledge from it that brought 15% returns in 2015, and you could learn a lot too.