Gold has long been an investment option for people from all walks of life, and it’s a good one. Gold has always and will always have real value, unlike paper money, making it a wonderful, stable, and just plain smart investment.
If you’re ready to join the many other people who already know the joys of investing in gold, it’s important for you to know your options. There are actually quite a few different ways to invest in gold, and we’ll detail some of the best ones below.
Direct, Physical Ownership
The most basic and simple way to invest in gold is by buying actual, tangible gold and then keeping it in your home or at a safe deposit box at the bank. With this option, you’ll always have access to your gold whenever you need it. The only downfall is that you’ll be entirely responsible for keeping your gold safe and in good condition, but as long as you can do that, there’s nothing wrong with this simple choice.
Most people who choose direct ownership will purchase gold bars or bullion, though minted coins are also a good option. Right now, some of the best coins for direct ownership are American Krugerrands and American Eagles, but any legitimate, official coin will do!
Exchange Traded Funds
Another option for investing in gold is to purchase exchange traded funds, more commonly referred to as ETFs. These are fully regulated financial products, which offers you security, and they can be traded, bought, and sold without you having to physically handle or receive any actual gold.
A lot of people like that this option is so hands-off and that they are not responsible for keeping real gold in their home or at a bank. Many people also enjoy the convenience of being able to sell and buy ETFs at their will and at any time.
Gold Mutual Funds
You can also choose to invest in gold mutual funds, which are basically portfolios of gold stocks from big, secure gold mining companies. This option is good for those who are familiar with stocks and mutual funds in general since the process of buying gold mutual funds will feel familiar. It’s also nice for those who don’t want to handle the gold themselves and who want to diversify their investment portfolios.
Finally, you could choose to open a gold account. If you go this route, you can either get an allocated account, where you’ll keep the gold with a bullion dealer or in a depository, or an unallocated account, in which you own certain amounts of a bank’s gold but don’t actually, physically handle or take the gold. Either option is good; it’s really just a matter of preference.
As you can see, there are many different ways to invest in gold, making it easy to find the option that works best for you!