In the year 2000, gold was valued at $279.29 an ounce. However, as of March 2023, gold prices are a whopping $1,855.33 per ounce.
If you’re looking to invest, then consider the different types of gold available. Gold investing is an excellent strategy when looking to turn a profit despite economies and other markets facing specific challenges. Gold is even seen as a hedge against inflation, so if you’re interested in buying gold, you’ll find that investors often put their gold in more stable investments when inflation outpaces current interest rates.
However, what are the different types of gold you can invest in? This article walks you through the best types of gold investment, so be sure to keep reading for information every investor needs to know.
Gold bullion is often purchased as gold bars or gold coins. The benefit of investing in this type of gold is you can physically see and touch your investment. However, when you have tangible gold investments, there’s no way to physically insure its safety.
If you’re interested in purchasing gold bullion, you can go through an online dealer, a local dealer, a collector, or even a pawn shop. Always know the current price per ounce of gold when you go to purchase it, to ensure you get a fair deal. You should also consider transacting in bars and not coins, since you may pay a collector’s fee for the coin itself, and not just the gold content.
Another great way of investing in gold is with gold futures. This allows you to speculate on gold’s rising and falling prices, and may even allow you to physically maintain your investment, although this isn’t usually preferable with investors.
A huge advantage of gold futures is you’ll find yourself with a huge amount of leverage, meaning you can own a large sum of gold futures without spending much. However, if these futures move in a positive direction, you may make a lot of money, fast.
Sometimes gold investors don’t want the hassle of owning tangible gold and want to avoid fast-paced margin requirements associated with the market of gold futures. ETFs had a shared goal: to match gold’s performance price, minus the annual expense ratio of the ETF.
You can exchange ETFs faster than you can exchange bullion, trading your funds any day of the week that the market is open, similar to selling stock. This makes gold ETFs more liquid than selling physical gold bullion.
Another popular way of benefitting from increasing gold prices is by owning the mining business that produces gold. Mining stocks are an attractive alternative for investors that still profit from gold.
The first means of profit comes from the price of gold as it rises. The second means of profit comes from miners raising production over a period of time, for a compounded effect on gold pricing.
Different Types of Gold to Invest In
Now that you know about the different types of gold to invest in, you can embark upon your next investment opportunity. Choose from gold bullion for a physical investment in gold or ETFs for something more liquid.
CMI Gold & Silver buys, sells, and trades all types of popular bullion. Contact us today to see how we can help.