Gold and silver has always been the favourite investment avenue for the people. Almost all the investors look for diversifying their portfolio by buying hard asset such as gold and silver. Investment in hard assets can offer wealth protection to the investors and especially investment in gold is considered quite beneficial for long-term performance.
There are many ways in which you can invest in gold. The retail market is one such way. Another way is when you buy gold online. If you are thinking of buying gold bullion bars or coins then this article can be of great use to you. We will tell you the ten most popular ways to invest in gold.
1. Gold bars
You can invest in gold bars by buying gold bullion bars available in metric size. The price of the gold bullion bars are directly linked to the market price of the gold. The buyers also have to pay a premium on the marketing and manufacture of the bars.
2. Sovereigns
Another way of investing your money in gold is by buying gold coins. These coins have the sovereign images printed on them which make them more popular among the people. These sovereign coins are also exempted from the capital gains taxes.
3. Krugerrands
Investing your money in buying the South African Krugerrands is another popular option for investors.
4. ETFs
ETFs or the Exchange Traded Funds are generally available for all the precious metals like the gold, silver, platinum, etc. This investment option works by tracking the changes in the price of the metals and are traded on the stock exchange. You can trade on a daily basis on the ETFs and you just need to pay the deal charges to the brokers.
5. Investment trusts and unit trusts
Investment trusts are those popular companies which invest their money in the gold mining companies or other avenues of gold. Though volatile and unpredictable, investors who prefer taking risk invest in this option.
6. Gold accounts
There are two kinds of gold accounts offered by the gold bullion banks – allocated and unallocated. When you decide to keep your gold in the allocated account, you keep it as a safe deposit with a registered gold dealer or depository. On the other hand, the unallocated accounts do not have any insurance and are relatively risky.
7. Gold shares
Investment in gold shares means that you are investing the money in the companies who deal with gold in some or the other way. These companies can be the one that mine gold or trade in gold.
8. Gold jewellery
Buying the gold jewellery is a very common way of investing the money in gold. This gold investment is not considered serious due to its changing nature.
9. Gold certificates
These are the instruments which allow you to invest in gold without taking the risk of keeping the real physical gold metal.
10. Other structured products
There is plethora of investment options linked to other commodities available in the market.