Like any other smart investor, you should ensure that your portfolio is as diverse as possible, so as to minimize the risks. It only makes sense to invest in gold, which is always in demand. There are various ways to invest in gold. You can choose to get certificates & stocks, or buy gold bullion. In this post, we talk of the basics in detail.
Understanding gold bullion, certificates, and ETFs
For the uninitiated, gold bullion comes is available as bars or ingots and is considered to be a great investment for those who want to have physical gold. All gold bullion bars are 99.5% pure and are often considered to be a great way to stock gold. Now, if you want to go for stock trading, you can always invest in a gold mining company. If ownership is what really concerns, ETFs and certificates are also great choices. Basically, it’s like trading in gold, but you never really get to touch it. As the price of gold fluctuates, you can choose to retain, sell your ETFs or buy more, depending on your investment goals. Many people consider bullion to be a better choice, given that it’s more tangible, especially when in an economic situation.
Gold bullion vs. certified gold coins
The quality of any metal determines and influences the price, and being 99.5% pure, gold bullion bars are always a better choice, especially with regards to investment. Certified gold coins are more ideal for people who want to just own gold or want to collect coins. Such coins, if rare, can fetch a higher price than the spot price of gold, but again value depends on many factors such as authenticity. Typically, the price of certified coins is not related to the spot price all the time, so if you are investing in gold with the intention of selling it later for a profit, bullion might work better.
Pricing of gold bullion
The price of gold bullion may fluctuate, but is determined by three major factors. The first is obviously the price, and secondly, the fineness of the metal. The third element is the current spot price. Just to break the bubble, there is nothing called 100% pure gold.
Consider your investment goals, how much you can afford to spend, and you can check online for dealers and sellers. A little research goes a long way when it comes to buying gold like a pro.