If you're looking to invest in gold, then you have a few options. You can choose to own physical gold or you can purchase stock in companies that track gold. You can even purchase shares in gold mining stocks. Each one has its own positives and negatives.
Bullion
Many people view this as the purest form of gold investing. When you purchase gold bullion, you take physical possession of gold. A benefit is that you don't have to pay a holding fee or any expenses. Once you pay for the bullion, the transaction has ended. There are no recurring fees.
Another benefit is that bullion is very easy to sell. You can walk into any major jewelry store in your city and sell gold. You can also find places online to sell it.
The drawback is that you will have to be responsible for the gold. If your home gets broken into, then someone could steal it. Thieves can't steal shares in a company.
When you buy gold bullion, you will either by 1/10 of an ounce, 1/2 an ounce, or 1 ounce. The smaller pieces tend to have a slightly higher premium. If you are looking for the best deal, then you should look to by 1 ounce gold bullion coins.
Exchange Traded Funds
There are companies that either own gold or invest in gold futures. People who are bullish on gold invest in these companies because their share price tracks the spot price of gold.
When you purchase these stocks, you will have to pay a brokers fee. Some of these funds also charge a management fee. This goes to pay the staff that decide when to buy options, sell put options, or any of the other defensive techniques they have to protect their investment.
Gold Mining Stocks
A third method to invest in gold involves buying stock in a gold mining company. This is a bit riskier than the other methods because a particular mining operation might fail. When the price of gold is strong, and the mine is producing, then the stocks will rise. However, there is too much risk for the average investor.
Rare Gold Coins
Lastly, there are rare gold coins. If you want to collect coins as a hobby, or for their value as rare coins, then go ahead. However, don't purchase rare gold coins as an investment in gold. Rare gold coins are valued above the spot price of gold. There are many factors involved in purchasing rare coins. You have to consider the condition of the coin, the number of them in circulation, as well as the demand in the collectors market. When you purchase bullion, all you have to know is the spot price.
For more information about buying gold, contact a professional like Rocky Mountain Coin Inc.
Share28 July 2015
Adoption is a beautiful thing. Raising a child someone else had is a completely unselfish act of love. Do you want to adopt a newborn in the near future but are afraid you won’t have the necessary funds to do so? Consider meeting with an experienced financial adviser. This professional can sit down with you and recommend viable fundraising options. For instance, you might want to take out a loan. Or you may wish to sign up for a grant. Obtaining a tax credit is also an alternative. On this blog, I hope you will discover effective tips to help you raise money for an upcoming adoption.