Gold investing offers diversification from financial assets such as stocks and bonds. Gold is also considered to be a long-term hedge against inflation. In this article, we’d like to point about 5 things you need to know when investing in gold.
1. Government-issued coins are considered to be safer
When buying gold, it is safer to buy government-issued coins such as American Eagles or Canadian Maple Leafs, and to buy them from a reliable source. Buying gold bars is an option, but some gold bars are known to have been tampered with, especially those coming from China.
2. If possible, buy coins in larger sizes
Gold coins can be bought in various sizes such as 1/10 oz, 1/4 oz., 1/2 oz., and 1 ounce. Buying a single 1 oz. coin is actually much cheaper than buying ten 1/10 oz coins or four 1/4 oz coins, even though the gold in weight is the same.
3. You can buy gold for your retirement savings
In the United States, it is possible to acquire gold as part of retirement savings. It can be done so with the use of Gold Individual Retirement Accounts.
4. You can buy gold funds
There are many funds, especially the Exchange-Traded Funds, that specialize in gold investing. There are two main types. One actually buys and stores physical gold, and the other is based on futures contracts. The first one is less speculative.
5. Gold stocks
Yet another way to enter into gold investing is to buy shares of gold companies. However, their price rises may not match the rise of gold prices.