subject: 6 Ways You Can Invest In Gold [print this page] As an investor, it is important to research and find out which is the best way to invest in gold depending on your requirements. Gold investment is indeed a wise choice as this metal has always been stable and has provided investors with a buffer during tough economic times. Before you invest in this precious metal, it is imperative to understand the advantages and risks associated with each type of gold investment.
Here are 6 ways you can invest in gold -
1.Futures and options in gold is a way to make quick money in gold bull market. This method however carries great risk. It is as easy for you to lose all. If you are a beginner, it is a good idea to keep away from gold futures and options.
2.Through junior mining stocks, you will be investing in companies that explore mines. However, only one in ten thousand companies actually strike gold. If you feel lucky enough, you can choose this investment type and make huge profits during gold bull market.
3.Investing in blue chip mining stocks is by far a cash creating opportunity. These companies have many operating mines and therefore generate profit earnings. Cash earnings are then re-invested in junior mining companies that have stuck gold. Blue chip mining stocks eliminate the risk of investing based on wild guesses. Instead of investing in various junior mining companies waiting for one of them to strike gold, you just invest in those that have already made a discovery.
4.The best way to invest in gold is to purchase gold stock mutual funds. Reputed mutual fund companies know exactly how to locate the winners. You can take the help of these companies to identify the best gold stock mutual fund investment options.
5.Many investors purchase rare gold coins. These mint state, investment grade gold coins offer good return on investment in a gold bull market. It is important to choose the least expensive rare gold coins with the highest gold content.
6.If you wish to own gold, it is a good idea investing in gold bars or bullion. Bullion coins are the common gold coins. Some of the popular coins include the Canadian Maple Leafs and Krugerrands. These coins are slightly more expensive than the current gold price. Rare gold coins move along with the price of gold.
You can choose to invest in gold in any of the above ways depending on the amount to be invested and the risk you are willing to take.
