The Best Ways to Invest in Gold A Complete Guide


When people think of investing, their minds usually go to the stock market. This market holds a widespread reputation for being the best way to accrue wealth.

However, the stock market is often unstable. Several outlying factors, from inflation to geopolitics, can affect its performance. As a consequence, your assets could depreciate at this time.

Instead, most investing strategies include ways to hedge your assets against inflation. Usually, these strategies include several ways to invest in gold.

Gold investments are one of the best ways to protect your wealth in uncertain times. Gold retains its value in the long term, making it an excellent investment.

So, how can you start buying gold? If that’s what you’re asking, you’re in luck! We’ll explore some of the best ways to begin investing in gold.

Buying Gold Bullion

Did you ever watch a pirate movie as a kid? If so, you probably saw a treasure chest filled with gold coins or bars. If you were like most kids, you wanted to hold that shiny metal in your hands.

Fortunately, that doesn’t have to be a childish dream! One of the most popular ways to invest in gold is by buying gold bullion. This method can help you establish a gold IRA, such as those offered by William Devane.

Gold bullion is a tangible gold asset that you purchase from a mint. There are three types of gold bullion:

  • Government-minted coins
  • Gold bars
  • Gold rounds

Government-minted coins include a national symbol engraved on the coin. For US investors, that symbol is the American Eagle. These coins are small and easy to store away.

Alternatively, you can purchase coin-shaped bullion called “rounds” from other mints. These privately minted coins often have several designs engraved on them, making them fun for collectors to buy.

Finally, there are gold bars. These bars are often the most satisfying investment to hold in your hands. They make you feel like the richest person in the world!

However, gold bullion investments also come with risks. Owning gold makes you responsible for storing it safely. Otherwise, somebody could steal your gold assets and deprive you of significant amounts of money.

Non-Physical Ways to Invest in Gold: Gold Futures

One appeal of gold bullions is that they are a physical asset. You can touch your bullion and store it in a place whose location you know.

However, bullions often cost immense sums of money. So, some people decide to invest in gold through other means. One example of this is through gold futures.

Gold futures allow you to speculate on the price of gold. You can make significant money if the gold futures follow your predictions.

Gold futures have several advantages that make them attractive to investors. First, you can own several gold futures for comparatively little money. This approach gives you much more leverage than gold bullion can offer.

Furthermore, gold futures also allow you to receive a physical delivery of gold. However, this practice is less common in the futures community.

But, as you may expect, this approach has a downside as well. When gold moves against your predictions, it forces you to put up high volumes of money to maintain your margin.

If you can’t make the payment, your broker will close the position. So, although you can make money fast with futures, you can also lose it quickly.

Buying an ETF That Owns Gold

We’ve seen so far that buying physical gold and using gold futures have significant downsides. One way to bypass those drawbacks is to buy an exchange-traded fund (ETF) that tracks this precious metal.

The goal of ETFs is to match gold’s price performance, subtracting the ETF’s annual expense ratio. This way, you receive a portion of the gold’s value through the ETF.

Another advantage to this method is that your ETF is more readily exchangeable for its market price value. The value of gold bullion can fluctuate in the short term, making it difficult to “buy low and sell high.” Likewise, it’s difficult to find a market that provides your gold’s value.

However, an ETF bypasses this issue. You can trade your fund any day the market is open and receive the prevailing price. In this way, your fund functions more like a stock.

This feature makes your ETF a more liquid asset than physical gold. Plus, you receive the added benefit of trading from the comfort of your home.

Own Mining Stocks

This approach combines stock investing and gold investing. Owning mining stocks allows you to benefit from rising gold prices by owning the businesses that produce the metal.

Mining stocks help you profit from gold in two ways. First, when the price of gold rises, your mine’s profit increases as well. Second, the mine can also raise its production over time.

However, investing in mining stocks has its drawbacks as well. First, several risky miners exist in the world. Before investing in a mine, ensure it’s a proven figure in its industry.

Also, avoid investing in small miners. These miners are more likely to close their business than their larger competitors.

Finally, investing in mining stocks subjects you to the stock market’s volatility. These stocks can be volatile, gaining and losing value in a heartbeat. So, consult an expert broker to help you find the best mining company for your investment.

Find the Best Way to Invest in Gold

As you can see, there are several ways to invest in gold. Each offers distinct advantages for different investment goals.

So, use these investing tips to find the best gold investment strategy for your needs! Before long, you’ll have a portfolio that can withstand several outside pressures.

We hope you enjoyed this article! If so, check out our other content today.