In times of inflation, stock market uncertainty and turmoil in world events such as we are experiencing now, many investors are turning to gold to support their holdings. A looming recession and other risk indicators can make you take a second look at your portfolio and think about new ways to invest your money.
If you are investigating gold as an investment option, you can choose from a variety of investment options. Get started by requesting a free asset protection kit to learn more.
Before starting the process, it can be valuable to understand the different types of gold you can invest in and where you can actually do it.
Where can you buy gold?
If you want to invest in precious metals, there are several options you can consider. Here are the types you can buy – and where you can buy them.
You can own gold in a Traditional Gold IRA, a Roth Gold IRA or a Simplified Employee Pension (SEP) Gold IRA that is tax-advantaged and structured like their standard counterparts. However, the IRS mandates that your precious metals be stored through an IRS-approved custodian who can arrange to store your gold in a depository.
A company like Goldco can help you start a Gold IRA now.
Where You Can Buy Gold IRAs
Gold IRA investments are usually available through precious metals companies that help you open your self-directed IRA account. The company also helps you select a guardian who purchases the gold on your behalf. Goldco, Birch Gold Group and Augusta Precious Metals are a few gold IRA companies that are commonly used by investors.
Physical gold is generally sold in two forms: bullion or coin.
- Gold Bullion: Bullion is the bulk form of gold, and the most common forms people often think of when talking about gold bars or coins. Gold bought at the market must be 99.5% pure, and you can buy the yellow metal in various weights, from one gram (currently less than $100) to 400 ounces (about $700,000).
- Gold Coins: You may need insurance or a secure storage facility to protect gold bars, but gold coins are relatively easier to store—usually weighing an ounce or less—and more liquid.
Where you can buy physical gold
You can invest in real gold in a number of ways, including through an online dealer or by buying from a local dealer or pawn shop. Monitor the price of gold, so that you don’t get into bargaining trouble. Remember, if you can pay lower premiumsA lot is because there is less processing than coins.
Gold coins are generally intended for both collectible and investment purposes. Several governments mint gold coins, including the US Mint and the Royal Canadian Mint. Private mints also produce gold coins.
Gold exchange-traded funds (ETFs) are a convenient option to get in on the gold action without having to invest in a large bar safe. You can buy shares in an ETF that owns gold in a physical vault, but you can execute that ETF trade from a computer or device anywhere with an Internet connection.
Where You Can Buy Gold ETFs
You can buy gold ETFs through a brick-and-mortar or online brokerage. As such, you can easily exchange your gold for cash, making the investment highly liquid. Two of the most popular ETFs in the US are the SPDR Gold Share ETF (GLD) and the iShares Gold Trust ETF (IAU). Learn more now or use the table below to explore your gold buying options
Gold Mutual Fund
Like ETFs, gold mutual funds offer you access to a portion of the gold market with a fund that invests in the precious metal or owns shares in companies that produce gold. Gold mutual funds can be more affordable and diversified than individual stocks. Another advantage is that you don’t have to research the gold mining companies you invest in; The fund manager will do this for you.
Mutual funds where you can buy gold
Like gold ETFs, gold mutual funds are available through brokerages. Before investing, review the fund’s overall performance, annual returns and asset allocation. Investing in gold mutual funds can be more cost-effective than owning gold bars or coins.
Gold Mining Company
Many investors preferMining companies, especially when gold prices are rising. You can profit both when the price of gold rises and when mining companies increase production. Be aware, however, that not all mining companies are well-run, and poorly-performing ventures can affect your share price.
Where you can buy gold mining companies
Investments in individual gold mining companies are achieved through a brokerage or investment app. You will want to thoroughly research any company you are considering for your gold investment.
Futures are contracts that you can trade with other speculators who want to profit by betting that they will reach a certain price by a certain settlement date. Be careful with gold futures as you can lose more money than your initial investment. Depending on how the contract is structured, you may actually pay the contract. Many investment experts recommend gold futures only for more experienced traders.
Where you can buy gold futures
You can buy gold futures contracts on the New York Mercantile Exchange through a full-service broker that offers futures trading. You will fund your account and trade gold futures through your account the same way you trade stocks through your brokerage. Contracts are usually quoted for 100 troy ounces per US dollar per ounce.
Investing in gold may not make sense for everyone, depending on your unique financial situation. Each type of gold investment comes with a setYou must fully understand before investing. But with different types of gold investments, you can find an option that suits and suits your needs .
Learn more by talking to a Goldco expert now!