How to Invest In Gold: A Beginner’s Guide

Since ancient times, gold has always been a valuable commodity. In 2020, it hasn’t lost even a speck of that appeal.

What is surprising, though, is that only about 10% of Americans owned gold in 2020. It doesn’t make sense why more people aren’t investing in gold.

One thing that may be holding people back is that they don’t know how to invest in gold. Do you go out and buy a big brick? Should you pick out jewelry or coins? Do you get stocks?

If you’re a beginner looking to invest, then we want to help. Read on to learn how to invest in gold and make a profit.

Buying Gold as a Physical Investment

One of the easiest, fastest, and most secure ways of investing in gold is to buy it as a physical investment. That means buying pure, physical gold. There are several types of physical gold you can invest in like:

  • Bars
  • Coins
  • Jewelry
  • Art

Gold bars, also called bullion, are available in a range of sizes. You could end up getting a few grams of gold or a 10-ounce bar. Bullion is expensive, but it’s easy to preserve and exchange when you need to.

Gold coins are more collectible. They’re usually one or two ounces. Depending on the design and age, these could be worth more than the pure value of the gold. If you need help picking a coin, check out Rare Metal Blogs recommendation page.

Jewelry and art work in a similar way. They’re likely worth more than the gold by itself.

Exchange-Traded Funds

As mentioned in the beginning, gold has held value since antiquity. If you want a long-term, stable investment, then gold ETFs might be the best option for you.

Exchange-traded funds act as if you bought individual stocks. Your ETFs can get exchanged or traded in the same way. You won’t actually own the gold, though. You’ll only hold funds that get backed by gold.

Investing in Futures

Are you looking for a more high-risk, potentially high-reward way of investing? If so, then you could invest in gold futures. Futures are a type of contract between you and a future buyer.

Your future buyer agrees to get a set amount of gold from you at a later date. They agree to pay the future market price, too. That means you have the potential of earning a whopping profit if gold increases in value.

How to Invest in Gold Like a Pro

Learning how to invest in gold is a tricky road full of highs and lows. The type of gold you invest in and the way you go about it can change over time. You may start investing in physical gold and then later opt for stocks instead. You may choose to diversify.

Either way, your investment journey is your own. So, go out there and start investing like a pro.

Are you looking for more valuable insights to get you through 2022? If so, then you’re in the best place to get started. Head over to our main blog page now to see more of our favorite content.

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