Best ways to invest in Gold

Investing in gold is a good idea

Gold is considered to be the safest option for investment as it does not involve complicated procedures. But since the changing times, there are myriad ways available for the investors to invest in gold. Primarily, due to the fact that it acts as a hedge against inflation, offers easy liquidity process and caters to lowering overall portfolio risk. Investor must decide the duration and the monetary amount which is to be invested.

Best ways to invest in gold:

  1. Buy gold bullion/coins:-

    Investing in gold by buying and storing it in the form of bullions/ coins or any other article made of gold. It is a direct, safe and the most prominent way of investing in gold. As they are conveniently procured and due to the probable appreciating price value attached to it., an authorized and trusted Royal Canadian Mint Dealer that offers 100% insured gold bullion with highest purity level. It provides an array of choices for gold investors and a promising high quality service to it’s clients.

  2. Invest through buying shares in Gold Exchange Traded Funds (ETFs):-

    “All that glitters is not gold.” In accordance to the current scenario, investors have an access to numerous options to invest in gold apart from buying the gold bullions/coins. Gold ETFs are funds that purchased or sold just like stocks, in any brokerage account. It is a more beneficial and cost-effective method of gold investment. It is appropriate for an investor who plans to invest large sums or prefers trading at regular intervals, as it provides easy liquidity and does not possess a fixed tenure. But, it is mandatory to have a Demat account to trade in Gold ETFs.

  3. Invest in Gold mining company stocks:-

    Another option for Gold Investment is through purchasing shares in Gold Mining Companies. The key factor before investing is to consider the company’s history of paying dividends and the sustainability of it’s dividend payout ratio. Such an option offers both pros and cons as the returns fluctuate in accordance to the price of gold. Referring to the advantage, if the price of the gold falls then the mining companies often tend to divert the focus on another metal. Whereas, the disadvantage is that the mining stocks can have a downfall along with the rest of the market, even when the price of the gold is stable.

Buying Gold Futures:- Gold Futures is another alternative that transcends the scope of investing in gold as these are the contracts that are traded on exchanges. They are bit complicated, in which the investor agrees to buy a set quantity of gold at a particular time in the future. Traders deal in buying and selling of gold futures with regard to the price variations of gold. The contracts basically operate on a minimum requirement of 100 ounces of gold. Gold Futures offer more flexibility and financial leverage to the investors than opting for buying physical gold articles.