2 Ways of Investing in Gold That Makes Sense
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Everyone agrees regarding one tip in the investment 101 list. First, an investment in gold should be a part of your investment portfolio. Secondly, you can have your investment in gold either in the form of credit Suisse gold or in the form Exchange Traded Funds(ETF’s). Although everyone more or less agrees to this, the problem is that there are numerous ways in which you can invest in gold and each one of them claims to be more effective than the other.
This is one of the most raging debates and discussions in any commodity investment gathering and it has the capacity to throw you off the track. This is why this piece brings to you the top 2 ways to invest in gold with your hard-earned money:
1. Direct Ownership of Gold
The only thing better than having certificates certifying the ownership of gold for you is to have your hands right on the metal itself and own it for yourself. Yes, you are being asked to buy gold and keep it with you in the house or in the locker at a secure bank. There is no better way to invest in gold than this too simple to be believed method. But it happens to be one of the most recommended ones by investment experts and other analysts.
Historically, people prefer owning and stocking gold in a firsthand manner rather than keeping it with other financial institutions. You can always sell off the gold that you have when you need some liquid money and the price of the gold has appreciated.
2. Exchange-Traded Funds in Gold
Exchange Traded Funds or ETFs as they are better known as are one of the most popular and secure forms of commodity trading in the market for investment. Gold ETFs have witnessed a recent upsurge in demand and viability during the recent years.
Two ETFs ply in the US investment market – GLD and IAU. The best thing about the ETFs is that they function as mutual funds in the stock market. The fact that their portfolios don’t undergo any change during the period of the investment make it more secure than other forms of investment tools in the market.
The two ETFs, (GLD and IAU) have gold bullion as their one and only asset in their portfolios and you can rest assured of the fact that this is one thing about the gold ETFs that will never change on its head.
There are many other popular and effective methods of investing in gold, gold mutual funds and junior gold stocks. But it can be effectively concluded that none of them happen to be as rewarding and secured as the two methods that have been mentioned in this piece. Remember than the dollar may fall in value but gold rates will not depreciate. Preserve the value of gold in the form of minted coins and invest in the above-mentioned types of ownership.
B. Lyttle is a finance expert and an experienced writer for 5 years now. She’s a contributor to many popular personal finance websites.
Category: Investing
Investing in precious metals might be one way to go, and you can learn more about it in this video http://www.mutualfundstore.com/archive/investing-in-gold. But you need to remember that gold doesn’t grow. Perhaps the price for it will go up, but it could also go down. So I wouldn’t personally have a lot of gold in my portfolio, but that’s up to each investor.