With gold long touted as an inflation and currency fluctuation hedge, and the price of gold seemingly reaching new highs every month, if not every day, more and more investors are looking into owning some of the shiny yellow metal in their portfolios.
But how do you buy gold? The list below details just five ways you can invest in or buy gold.
Gold Mining Company Stocks
Gold is not created, it is a natural element that is mined from the earth, and like any mining activity there are publicly listed companies that specialize in mining gold. Purchasing gold mining stocks gives you exposure to fluctuations in the gold price through the gold mining companies share price. Of course, the price of gold isn’t all that will affect a gold mining company’s share price.
An ETF is an exchange traded fund, which simply means it can be bought and sold on the stock exchange, through a broker. GLD is the ticker for probably the most well known Gold ETF.
Gold Bullion is held in vaults on behalf of unit holders in the Trust, which removes the burden of storage and security of gold from the unit holder, but gives the investor exposure to upside (and downside) in the gold price.
Perth Mint Gold Certificates
The Perth Mint Certificate, precious metals program available to global investors delivered by the Perth Mint, in Australia.
Much like the Gold ETF listed above Perth Mint Gold Certificates give the investor all the benefits for owning gold, without the burden of dealing with transporting, storing and securing the physical metal.
The Perth Mint Gold Certificate gold storage program is the only storage program backed by a government – in this case the Australian Government. Perth Mint certificates can also be purchased for silver and platinum.
Gold Bullion Coins and Bars
Gold Bullion Coins and bars is the most cost effective option if physical possession of the gold is important to you.
Gold bars and rounds will be available at prices closest to the spot price of gold, but bullion coins have the added benefit of also being legal tender or currency. For example a 1 oz US Gold Eagle has a currency value of $50 and is backed by the US Government-for what that’s worth.
Gold Bullion Coins and bars can be bought from Coin Dealers, including a number of online dealers.
One of the drawbacks of gold bullion coins is the fear that should the government again confiscate gold from private citizens, gold bullion coins would be caught in this net. (There was a mandatory buyback of gold in the era of FDR).
That’s where pre 1933 gold coins come into play. The theory being that coins with numismatic value would not be subject to such a confiscation.
Numismatic coins with a gold content sell at a higher premium to spot than bullion coins and can be purchased from coin dealers.