Gold is a universal currency which worth will never drop. Gold is, probably, the safest asset you can acquire for a long-term investment strategy. Its price goes up even when the rest of financial tools depreciate. In a time of global financial crisis, gold’s value stays intact which make it extra attractive for investors to buy.
When it comes to speculative gold trading or short-term gold investments, it may not be so profitable due to gold’s low volatility. Many investors and professional investment funds use Gold as a balancing asset, making the whole portfolio less risky.
Whatever the amount of money you decide to invest in Gold you will find your best option among several types of gold investments.
Investing in Bars and Bullion coins
For the minor premiums, your will get investor-grade bullion coins which price is equal (almost 100%) of the physical Gold price on the market. Legally owning bars and bullion coins allows you as an investor bring stable and strong asset in your portfolio, especially if the portfolio consists mainly of high-risk assets such as shares, currency futures, etc.
Buying physical Gold
It’s a great tool to preserve wealth as physical gold will come in handy in every life situation and every financial hardship. Don’t trade it, just buy and keep. Gold will make an excellent solid foundation of the portfolio with high-risk and high-volatile assets.
Gold coins of numismatic value
Buying gold coins of numismatic value increases the overall value of the investment as you acquire not only precious metal but only item of the cultural and historical matter.
Electronic gold or e-gold is widely used by users who are used to make electronic transactions, so e-gold becomes a highly reliable equivalent or physical gold converted into digital currency. Like every other currency, its price may go up and down so traders and private investors may earn the profit on such swings.
Investing in paper gold means investing in gold mining companies (buying shares of such companies) who show successful financial track record or going to explore new gold deposits. Obviously, if the company you’ve invested in finds new gold deposit and starts exploring it, its shares appreciate on the stock exchange so investor earns the profit.
Trading Gold Futures
Gold futures is a very popular investment (speculative as well) tool among private traders and investors. Buying a gold Future at the current price (spot market’s price at the current moment) an investor hopes the gold’s price will rise so he will be delivered his Gold at the lower price he’s paid earlier. Gold futures (and futures in generally) are often used as a hedging element.
These are Gold exchange-traded funds which follow the gold prices solely. Read here in detail about investing in Gold ETF’s and find the list of TOP-5 Gold ETF’s for investing in the 2017 year.