Chances of incurring losses by investing in gold are very low which is the reason financial advisors recommend this stable option
. Gold as a form of investment is especially good for beginners who wish to make a safe entry. The already stable gold market is safer today also due to technological advancements. Here are 6 safe ways for you, as a beginner, to invest in gold.
1.Many of us are not comfortable with storing gold in the form of jewelry, coins or bars in lockers and safes. They prefer purchasing gold in the electronic form to reduce the risk. For today's smart investors, trading in Gold Exchange Traded Funds or ETFs is the best option.
2.Each share you purchase will assure you of an equivalent quantity of gold. ETF transactions are always through a broker. All you have to do is call your broker and buy or sell gold.
3.In keeping with the demand for gold, banks offer the gold certificates. Here again, you do not have to keep and safeguard gold at home. Gold certificate is proof that you own a certain amount of gold which can be sold and converted to cash anytime you want to.
4.You can also purchase shares of companies whose business is to trade in gold. Gold mining firms allow investors to make equity investments. You must opt for this investment method only after you know the market inside out.
5.Another safe way for beginners to invest in gold is gold accumulation plans. This investment method is ideal for small investors and beginners who can benefit from upward gold market rallies and make profits. Many of us do not keep track of gold market prices and tend to lose money by selling at a loss or purchasing at a higher price. You will not face this problem with gold accumulation plans. Here, the money specified by you is deducted directly from your bank account every month to be invested in gold when it is traded. Risk reduces to a great extent as it is possible to average out the price.
6.Another safe gold investment option is to buy gold coins. These coins are portable and easy to carry around. Heavy gold bars and gold jewelry are riskier as compared to coins.
Choose any of the above gold investment methods and move on to advanced investment options only after you have gained sufficient knowledge of the market.