Gold Investors Guide
Gold Investment Options
You may be surprised to learn that there is more than one way to invest in gold. As gold continues to rise in return, more gold investment options become available for investors to take advantage of.
Gold investment option 1: Owning physical gold
This is clearly the first and most common way to invest in gold, purchasing physical gold in the form of gold bullion bars or coins. This is the preferred way to invest in gold as you can touch, feel, and physically handle your investment. You can store it at the bank or use it as ornaments or gifts.
Gold investment option 2: Buying a gold ETF (Exchange Traded Fund)
This is probably the second most popular way to invest in gold. This is like owning shares in a company, but you own shares in gold instead. It is the easiest way to invest in gold. Transaction costs are lower, and transactions in general are easier. The drawback is that you don’t physically own gold, just shares, so it is not as secure as owning the real thing.
Gold investment option 3: Owning Gold Mining Companies
In the last, you can own a gold mining company, or a part thereof, rather than the gold itself. Since owning gold is only profitable at price appreciation, owning a piece of a gold mining company earns you a dividend in addition to price appreciation. This is an attractive option since mining company stocks usually rise as gold prices rise.
As you can see, you don’t have to settle just investing in physical gold. You have a number of options when it comes to gold investments.