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A Beginners Guide to Investing in Gold

by / No Comments / 4 View / September 22, 2014

If you are looking to diversify your investment portfolio then purchasing Gold could be an excellent option for you. The price of Gold often does not move, in the same way, that other investments such as equities and property do. The rarity of the metal also helps to keep prices high, and traditionally the value of Gold increases over time. What you may not know though is that there are many different ways that you can invest in gold.

Gold Accesorries

Image from theguardian.com

Investing in Physical Gold

One of the most popular ways all over the world to invest in Gold is to purchase physical Gold. This can include purchasing;

• Gold Bullion
• Gold Coins
• Gold Bars
• To a lesser extent Gold Jewellery

Purchasing Gold should not be looked at as an investment as such, but more of a way of saving for a rainy day. With Gold bars, bullion and coins, you will be able to get a set value of each item which is dictated by the price of Gold on the commodity market. With Gold Jewellery, however, you will often find that the price of the jewellery when bought from a jeweller is often over that of the market value of the Gold, which is why jewellery is less of a wise investment. One thing which you need to take into account is where you will store the Gold that you buy. Ideally you will store this in a safe or safety deposit box to guard against theft, but this does have a cost if you are using the services of a company or bank. You may also need to consult your home insurance policy if storing Gold in your home to make sure that you are covered for the full value of the Gold. If you do need some quick cash for whatever reason that selling Gold bullion in Melbourne, or anywhere else in Australia, is a simple and straight forward process.

guide to investing gold

Investing in Paper Gold

Another popular method of investing in Gold is to invest in Paper Gold. This means that you invest money in companies that mine Gold or are exploring new deposits. If you are going to invest in this way, then you will be best off diversifying your investment across a few companies, rather than investing all of your money in one place. You can also invest in the likes of Options, Futures, and also Spread Betting, which can see real returns on your investment. With these types of products, you can leverage your investment which allows you to borrow to increase the size of your investment. If the price of Gold goes in the right direction, this can allow you to make a very tidy return.

Investing Wisely

There are other mechanisms available for you to invest in Gold such as Gold exchange-traded funds, Digital Gold Currency or E-Gold or Allocated Accounts. Each type of investment vehicle has its good and bad points, so you will need to weigh up which one suits you most, and that you are most comfortable with. Never spend more than you can afford to and especially do not borrow to invest if you can help it, and choose your investments wisely. With the correct knowledge and a bit of luck, you can grow your investment with great returns and prepare for your future and that of your family.

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