How to Invest In Gold: 3 Ways to Buy and Sell It
Gold is a safe haven for investors in tough economic times. Some people look towards investing in gold to diversify their investment portfolio, while others want to own it because it’s a luxurious commodity to possess.
There are about 53000 metric tons of gold reserves for countries worldwide. The United States of America leads the pack for the most gold reserves, estimated at 8100 metric tons. About 10.8 percent of people in the US own gold in the form of bullion bars, coins, and ownership certificates.
Here’s a closer look at the different ways of buying and selling gold, along with the pros and cons of each:
Ways of Investing in Gold
Gold is readily available as gold bullion bars or gold bullion coins. This investment is probably the most satisfying because you get to keep and hold your asset in its solid shape.
You can buy gold bullion bars and coins online from a trusted source or contact a reliable gold investment dealer to own this precious metal. However, the disadvantage of keeping gold in its physical form is the expense of insurance and secure gold storage.
If it’s not insured or held in proper protection, the biggest risk of keeping such a valuable asset in your possession is theft. Another disadvantage is that it may be difficult to get the full market price, especially if you have coins and require a quick exchange. As a result, you’ll have to sell your gold at a lower price than its value in the national market.
Gold futures are contractual agreements between investors and gold dealers. Investors speculate on the gold price and predict its rise in the future. They sign an agreement with the dealer to buy gold at the current rate with a future delivery date.
This allows leverage for the investors if the gold works according to their predictions and allows them to earn quick profits.
However, there’s an obvious disadvantage to this contract. If the gold moves against your predictions, you’ll have to pay a substantial amount of money to keep the contract running.
Another way to invest in gold is by buying certificates from companies and funds that own gold. The advantage of this investment is that you don’t have to worry about storage, insurance, or the changing market value of gold. Another benefit is that these certificates can be easily exchanged for cash.
The disadvantage is that the fund operates in the same way whether the gold price sees a rise or a fall. You also have to pay regular charges for the funds.
Orion Metal Exchange is one of the top gold investment companies in the United States, with a service tenure of over 50 years. We offer consultations on how to invest in gold, secure silver & gold storage investments, and set up precious metal IRA accounts.