How can I invest in Gold?

How can I invest in Gold? 

Owning gold can be a store of value and/or a hedge against unexpected inflation, geopolitical events and economic uncertainty. If you want to take advantage of the tangible nature of the precious metal, then you may consider buying physical gold. Physical gold can be bought in two major forms -1) Ornament 2) Bullion.

Gold ornaments can be purchased at a dealer of your preference, whereas bullion can be bought in the form of gold coins or bars issued by well known authorities. While we don’t recommend or prefer any platform, we had clients mention that they prefer platforms such as APMEX and US Gold Bureau for bullion dealings.

Holding physical gold, however, can be costly and burdensome. Fortunately, there are several other ways to own gold without keeping a physical stash of it. Now, let’s look at some of those investment options :

Gold Mutual Funds & ETFs: Gold Mutual funds and exchange-traded funds (ETFs) allow you to invest in a diversified portfolio of gold-related assets, such as gold mining stocks or gold futures contracts, without having to directly own physical gold. Investors can buy and sell shares of these funds on the stock exchange, making it easy to invest in gold without actually owning the metal. They trade like stocks and can be bought and sold through a brokerage account.

Gold Mining & Streaming Stocks: Investing in companies involved in gold mining, streaming and royalty business is another way to gain exposure to the gold market. Investing in gold stocks allows you to indirectly invest in gold. These companies are involved in the exploration, development, production and trading of gold. Their stock prices are usually correlated with the price of gold.

If you feel adventurous and want to speculate on short term price movements of gold, you may consider trading gold futures or options. You may consider these financial derivatives of gold to hedge your excessive gold exposure as well. Trading futures and options require a strong directional view and a time bound strategy. 

Gold Futures: Gold futures are contracts that obligate the buyer to purchase a specific amount of gold at a predetermined price and date in the future. This allows investors to speculate on the price of gold without physically owning it.