Commodity

A Simple Beginner’s Guide to Gold Investments

Investing In Gold

Gold has been a popular investment for a long time. Many people like the possibility of owning it as a physical asset, and there are other ways to invest too. Gold can be bought with coins and bullion, as well as collectable coins. You can also invest in gold certificates, put gold into an IRA or even buy digital gold currency. The options available can sometimes be confusing. Not many people know which one they should choose. Before you buy, you should familiarize yourself with some of the methods you can use to purchase gold. You also need to know how to decide if it’s a good time to invest in it.

When to Invest in Gold

Deciding if it’s a good time to invest in gold involves doing some research. Buying gold can be a good decision, but you have to do it at the right time. Having a look at the gold price history is a good place to start. Recently, gold hasn’t been performing too well, but the price has begun to increase. Advocates suggest that recent events may have been bad for short-term investors. But they say they are better for those in it for the long-term. With the gold market beginning to recover, some experts suggest that prices are going to start climbing substantially in 2016.

Physical Gold

When it comes to investing in gold, buying physical gold is one of the most popular choices. Many investors like to have those physical assets in their possession. There are a number of ways you can invest in gold using this method. It’s possible to buy coins and bullion that have a value based purely on their weight. You can also choose to invest in numismatic coins. Their values are affected by their collectability too. Of course, there are also other gold items that you can purchase. For example, some people buy gold jewelry, which can have a higher value due to its make, age or another measure of desirability.

Exchange-traded Funds

Exchange-traded funds (ETFs) are another option that many people go for when it comes to gold. These investment funds track the price of gold and can be bought through stockbrokers. You can choose between investing in physical ETFs or synthetic ones that mimic the price of gold. There are a couple of popular ETFs you might consider. They include Gold Bullion Securities on the London market and Streettracks Gold Shares in New York.

Gold Certificates

Another option you can use is to invest in gold certificates. However, your choices are limited in that you can only do it with one company. You can buy certificates from Perth Mint Certificate Programme in Australia. Investment gold is held in the vaults at the government Mint. You can purchase certificates to say that some of it is yours. The gold is insured by Lloyds of London. However, you don’t technically own the gold as it’s unallocated, but you do have a promise that you can have the gold if you want it.

There are other ways of investing in gold, such as investing in mining companies. If you think gold investment is a good idea, explore all your options before taking the plunge.