A lot of people look at gold as a good hedge against inflation, and it is also considered to be a relatively low-risk investment. Before you seek to broaden your investment portfolio with gold though, you should do plenty of research first, and an excellent place to start is the ft.com website where you can read all of the latest news on gold investments. When you are up to scratch with everything that is going on in the world of gold, you will then have to decide on how you are going to invest, and you have a few options available.
Investing In Gold Coins
Gold coins are a popular investment platform for many people, and there is an assortment of different coins that are available such as the Krugerrand or the Sovereign. Coins are more accessible for smaller investors to get started, and they can also be easier to sell (via companies like AU Precious Metal Solutions and similar agencies), as well as store them safely. Coins will take up less space, and you can also invest in a safety deposit box to store them in securely. Websites like GSI Exchange can facilitate easy purchase of gold coins and even set up a gold IRA account (find out more here) for you to help with better investments in precious metals that include but are not limited to gold.
Purchasing Gold Bullion
Whether you are after jewellery, coins, or bullion, and if you are investing large amounts of money into gold, you should consider bullion or gold bars seriously. As well as having bullion bars, you can also purchase smaller weights such as 1oz, 50g, and 100g bars. With the various sizes of gold bars that are available you can maximise your investment and fill your portfolio with a safe investment, but make sure that you do not look to exceed investing more than 20% of your overall portfolio for safety reasons. If you are interested to purchase gold bullion, you can click here to buy Brisbane gold now.
Investing in Gold ETF’s (Exchange Traded Funds)
Another popular investment vehicle is ETF’s, which are a kind of mutual fund and they can also be traded on the stock markets like ordinary stock. One of the benefits of this type of investment is that it is a paper investment, so you do not have the added expense of having to pay to store your gold.
Gold Mutual Funds
The mutual funds hold stock in gold mining companies and allow you to gain more exposure than ETF’s, which means the gains could also be higher as well. Most of these funds will invest in companies with experience that operate in established mines where production is at a steady rate.
Taking A Risk With Junior Gold Stocks
At the opposite end of the scale, you have the junior gold stocks which may not invest as heavily into established operations, where they may invest in exploratory operations instead. The benefit of this type of investment is that the potential returns can be much higher however as with any risk the amount of risk is also increased substantially.
The potential returns are linked with the risk, so think carefully and do your research before you decide which method of gold investment you are going to choose. Remember, when you invest in physical gold it is traditionally a long-term investment, so do not worry with the everyday ups and downs in the price and be happy that your investment will be there for many years to come, increasing in value.
