Are you looking for a way to make a successful investment, but you don’t know which option to choose? Well, you should search no more, because you can now invest in gold, the oldest and most enduring of all investments. You have multiple options from which to choose when you want to invest in this metal, so you can choose gold funds, ownership of physical gold or even gold mining stocks. As global currencies fall in value, gold commonly rises. So rather than keeping all your wealth in assets linked to traditional currencies, you should buy gold coins to ensure you have a balanced portfolio. There are many ways you can position your portfolio to profit, so you should thoroughly research all asset classes before deciding upon a strategy. But before deciding on your portfolio mix, you should seriously investigate the benefits of gold investment. Specialists state that the future financial growth is in gold and the tangible value of this metal would always be recognized by central banks, as it was from the oldest times.
What direct ownership implies?
There are different ways of investing in gold, and this one offers you the possibility to of significant profits while maintaining direct control and access to your asset. Almost every civilization has recognized the permanent value of gold, and some of them like the ancient Egyptians even tried to preserve it, by burying it. Even in present times, gold represents tangible value, independent of Government policy. Its value rises due to the supply and demand dynamic. As a precious metal, supply is limited to the amount of new gold which can discovered. Meanwhile, demand is rising rapidly. A crucial consideration when buying physical gold coins or bars is your anticipated timeframe. With a spread between buying and selling prices, it should be considered a medium to long term investment. Gold should be regarded as a defensive asset and not a speculative one, because it holds its value. Since the currencies’ tendency is a falling one, you should see gold as a way of maintaining the purchasing power of your money. The best way to invest in direct physical gold ownership is to buy different types of coins.
Choose to invest through gold-exchange traded funds
If you’re looking to trade the gold market and want a narrower spread between buy and sale prices, then you should consider a gold Exchange Traded Fund (ETF). Their popularity has exploded in recent years. If you’re unsure exactly what an ETF is, then you should consider it as similar to a mutual fund that offers you the possibility to trade on a stock exchange, as you would do with any other ordinary stock. However, unlike physical gold, ETFs are just pieces of paper at the end of the day. So a badly managed fund could cause losses to your investment. However, Exchange traded funds offer you the possibility to hold gold in an investment portfolio in a practical way.
Have you considered gold mutual funds?
This option is widely chosen by people who don’t feel confident investing in physical gold, but they still want to benefit from the advantages of exposure to precious metals. Gold mutual funds are seen as a convenient alternative, as the fund is diverse and managed by expert funds managers. It’s advisable to choose one of the well-known fund managers with a track record of producing profits. The funds are invested in a range of gold mining companies, spreading your risk and offering the potential for high profits. However, there will be ongoing management fees to pay, and the investment is still exposed to any of the mining companies going into administration if they’re badly managed.
Junior gold stocks might be the right choice for you
If you’re willing to invest in a more speculative type of stock, then this is the could be your best choice. These stocks are not likely to own any productive mines, so you might have some higher profit potential, but also a greater risk of losing your investment capital. Capitalization in this case is likely to be smaller than in established mining companies which make up mutual funds. This type of investment is unsuitable for investors whose tolerance to risks is low, and is more suitable to speculators rather than those seeking protection. Therefore, if you’re the type of person who has no issues with risk, this can be an exciting way to possibly make huge profits.
What do you say about gold futures and options?
Are you an experienced and sophisticated investor? Well, in this case, options could present the best method if you want to speculate on gold prices. It also provides the exciting possibility to speculate on the price movement in whatever direction you might want. So if you feel the price may fall in the short term, you can ‘bet’ on this and still profit! This is known as a Put Option. If you think the price will rise, you can buy what’s called a Call Option. These options are highly risky and considered a sophisticated form of betting. It’s only recommended for experienced investors with a high level of knowledge in the market. Before spending your money, it is advisable to fully understand the risks, because you have to know from the beginning if you want to go for this way of investing in gold, or you should try another one.
No one could guess, predict or know if the gold value would rise or fall in the short term, but if you are an investor and you want to put your money in a long lasting asset, then investing in gold is the choice. The way you do it is up to you.