How To Invest In Gold

Most modern flat currencies lack intrinsic value but this is not the case with gold. As per the financial experts, flat currencies like dollar, pound, euro, rupee etc., are prone to inflation but gold remains stable even in the most adverse circumstances. Taking into account the miserable economic conditions in the world, it is highly recommended that you make investments in gold, which can be an amazing safeguard against inflation.

Investing in gold was not simple in the past but in the modern world, you can take help from a number of firms which offer gold investment advice. Follow the below-mentioned guidelines if you are seriously thinking about investing in gold:

Decide why you want to Invest

The first step towards investing in gold is to decide why exactly you want to invest in gold. For example, a number of people want to invest in gold to be on the safer side. As mentioned above, if you possess gold in physical form, your chances of going bankrupt are almost none.

Invest in Physical Gold

One of the most commonly used methods of investing in gold is to buy gold bullion coins or bars. Gold bullion is mostly sold in 1-oz. increments and is 100 percent pure. There are many governments which sell gold bullion coins denominated in their native currency.

Purchase shares of Gold related Companies

Another popular method of investing in gold is to buy shares of gold-related companies on the stock market. There are a number of different gold mining companies in the world. One of the benefits of such investments is that it is liquid and can be bought and sold conveniently. However, there is always a risk element as market may crash any time.

Exchange Traded Fund (ETF)

Purchasing stock in the SPDR Gold Trust ETF is one of the latest methods of investing in gold. ETF is just like a mutual fund or stock without any fee. It will keep an eye on the gold prices and you do not have to worry about investing in gold mining companies, that are not handled properly.  This way of investing in gold is fast becoming popular in many countries.

Buy Gold Jewelry

This may sound a bit strange as gold jewelry costs you more than pure gold; however, you can go through the route of buying used jewelry. Keep your ears and eyes open for any opportunity to buy used gold jewelry. A number of estate sales organize jewelry auctions, which give people a chance to buy precious gold bracelets, necklaces or rings at a much lower price. You must be sharp and experienced to know the worth and price of used jewelry but once you are able to determine that, this technique will help you earn handsome profits.