The Easiest Way to Buy Gold and Precious Metals
Due to the ongoing conflict between Russia and Ukraine, global supply chains have been disrupted, leading to shortage in supply and increasing inflation. When there’s economic uncertainty, the best way to protect your assets and savings is to invest in precious metals.
In the past, very few investments have competed with gold as an efficient hedge against financial and economic concerns, such as rising inflation, economic upheaval, or currency fluctuation. Gold doesn’t ensure good cash flow, but retains or grows in value when currencies and the value of other assets fall.
If you’re also looking to invest in gold, there are multiple ways to do it. Let’s take a look at how you can buy gold or any other precious metal.
1. Physical Gold (Bullion and Coins)
One of the most common ways people buy gold is in its physical form, for example, gold coins, bars, and bullion.
Investors who purchase gold coins and bullion rely solely on the commodity’s price rising in order to make profits. If you want, you can purchase gold from a reliable local dealer, like Orion Metal Exchange, one of the leading precious metal investment companies in the country.
You can also buy other precious metals in the form of bullion bars and coins, including silver, platinum, and palladium. Do your research and stay informed about the current price per ounce of the precious metal you’re about to buy in order to avoid getting scammed.
The only downside to buying physical gold, or any other precious metal, is that someone can take it away from you. Theft is on the rise across the United States—so make sure you get secure vault storage service from Orion Metal Exchange or keep it somewhere safe at home.
2. Gold Futures
Gold futures are a means of speculating about gold prices going up or down in the future. Seasoned investors in particular tend to be well-versed in futures speculation.
An advantage of investing in gold futures is the huge amount of leverage you can use. In simple terms, you can own more gold this way than if you were buying it physically for less money. If the futures move in the direction you predicted, you can make a considerable amount of money in a short time.
However, the leverage you have goes both ways and there’s a significant risk of losing your money just as quickly. If the gold futures don’t go in the direction you thought they would, you may end up losing a lot of money because the broker will either ask you to invest more money to maintain your contract or will close the position.
Futures are also available for other precious metals like platinum and silver. However, experts suggest you avoid investing in futures if you’re relatively new to investing, especially in precious metals, as futures are more suited to seasoned investors with years of experience. Moreover, not every broker offers futures, so you have fewer options on the market.
3. Gold ETFs
If you’re not interested in buying physical gold and want to avoid the complexities that come with futures, invest in exchange-traded funds (ETFs) that track gold. Exchange-traded funds work by matching gold’s price performance minus the annual expense ratio of the ETF. The expense ratio is relatively small, usually below 0.10 percent.
A benefit of owning ETFs is that they’re more liquid and can be easily traded in the market, unlike physical gold which takes time to find buyers. Gold ETFs can be traded from home on the market online.
The risk with gold ETFs is that it exposes you to the price of the actual commodity, meaning if the prices go down, the funds will perform similarly. Moreover, the cost of the expense will be deducted as well. ETFs can be volatile, like stocks, which is why investors don’t regard them as a good option if you’re looking to invest for long-term profit.
4. Mining Stocks
Another easy way to invest in gold is to own stocks of a company that mines it. Investors find owning mining stocks a lucrative investment option due to two major reasons. First, gold prices rising means the profits for the mining company will rise as well. Secondly, the mining company can increase its operations over time, giving a boost to profits.
But just like any other stocks, mining company stocks are also volatile and not great for long-term investments. There are also risky mining companies that don’t yet have a productive mine, so you need to choose carefully. The best method is to check a mining company’s history of profits and production levels, as well as their market rating before investing in one.
5. Gold Mining Company ETFs
Want to avoid dealing with a private company? Buying ETFs of a gold mining company can be a good option for you. Gold miner ETFs give investors exposure to some of the biggest gold mining companies in the country. These ETFs are also diversified and one or two mining companies underperforming won’t hurt your investment much.
However, this doesn’t mean there are no risks involved with buying ETFs. While these funds give you protection from single companies, they won’t protect your investment from something that affects the whole industry, for example, low or falling gold prices.
Furthermore, read up on what mining companies are included in the fund. If the fund is comprises new and upcoming miners, the risk of loss due to mining companies underperforming is higher.
All things considered, the best way to invest in gold, or any other precious metal, is to buy it physically. If you’re in search of a reliable precious metal investment company in the United States, Orion Metal Exchange can help you.
We are a top-rated precious metal investment company and we deal on the American Eagle Exchange. We have a 4.9 rating on TrustPilot and are accredited by BBB. We offer pure gold bullion bars and coins for investment purposes. We also offer other precious metals, like silver, platinum, and palladium.
If you’re concerned regarding the safety of your gold, we also offer insured home delivery service and secure vault storage for gold and silver for your ease. Get in touch with us now to get more information!
