Are you looking for great investment options?
Are you looking for ways to grow your money?
There are plenty of investment options for people aiming to create wealth. Among their choices is buying gold shares.
Having gold bullion bars or gold coins as part of your assets has its own appeal. Who wouldn’t want to have some of these for their own, right?
People who have come across this option usually think it’s complicated. It's not, and it’s actually easier than you think. I will lay down the facts to help you decide if this option is best for you. I will also tell how you can make your first gold investment.
Why Do People Invest in Gold ?
Investors have the option to buy and store physical gold. If storing gold does not appeal to you, you may opt to invest in gold through exchange traded funds (ETF). The price of the ETF is relative to the spot price of gold.
There are a good number of reasons why investors prefer to buy gold stocks. If you are looking for something liquid, this is a great option. Because of its liquidity, financial experts looking for short term investments get them. They can trade these when circumstances are favorable.
Apart from that, gold stocks also cost less than the actual metal. Buying gold ETF is actually like buying the physical gold. Buying them in shares makes it more affordable. When you buy a gold stock, you only pay a certain percentage of the actual price of an ounce of gold. For instance, an ounce of gold may cost USD1700, whereas a gold share will only cost you USD170.
There is nothing like buying a gold coin or gold bullion bars that you can hold and pass on to your children. But what worries investors if they take this option is storage. Where are you going to store all your gold bars? How safe are they from theft? Will you have enough time to go to your vault and get your gold in case of emergency?
Buying gold ETF is like buying the metal itself without having to worry about storage. A lot of financial experts believe that gold is the best dollar hedge investment. This offers investors the option to diversify their portfolios. Factors like inflation dictate the prices of bonds, equities, or real estate. But the economic factors that determine the price of gold are different. This protects you from currency fluctuations and inflation.
Gold has intrinsic value. People all over the world value gold, and this is not bound to change for thousands of years. And even if this doesn't convince you, you might want to watch this video where Robert Kiyosaki is explaining why gold will always be a good investment.
How to Buy Gold Shares?
If you feel that this might be a good investment for you, then the next thing you want to know is how to go about purchasing them.
You see, you can buy gold stock in three various ways. First is through buying stock in gold mining companies. Second is buying gold mutual funds. The third is buying gold exchange traded funds. Let’s go over the different ways on how to buy gold stock.
1. Buying Stock in Gold Mining Companies
The most direct way of investing in these shares is buying gold-mining companies. This poses as the highest risk yet may reap the highest reward.
Because of this, you need to select the most profitable mining company. Make a thorough analysis on the companies you are putting your money on.
Check their production costs and the production increases. Look at the company’s debt, as well as the valuation of the company.
2. Investing in Gold Mutual Funds
Perhaps, as a beginner, you are still hesitant in putting all your money in just one gold mining company. This is understandable. This is why investing in gold mutual funds works for a lot of people because they can diversify. These are managed by professionals and are low-risk investments.
3. Buying Through Gold ETFs
The third option on how to buy gold stocks is thru ETFs. This is like a mutual fund because you can buy a variety of stocks and bonds; but, ETFs have lower fees. ETFs do not have active managers. The price of gold bullions determine the price of the shares. Buying this ETF makes you own gold that you don't have to store in your vault.
After you have decided how to buy them, you may invest through online or non-virtual brokers. The first step is to open an account and enter your orders. You can call your broker or financial advisers, as well.
As you can see, it’s quite easy to invest in gold mutual funds and ETFs.
Information is key. Do your research and invest your money well, and you are well on your way to reaping your profits in the next few years.