Gold Investment Ideas

Gold is a type of precious metal. This is a form of insurance and protection against inflation, global uncertainty as well as currency debasement. That being said, there are numerous ways how investors could lose their money with gold. Therefore, right before you consider buying this precious metal, it is highly advisable to keep yourself informed first.

Above everything else, there’s a golden rule when buying gold and that’s dollar cost averaging. This is putting fixed value of money into gold on a monthly basis no matter what the price. Now, for an average investor, doing such strategy can help in spreading risks over time and also, lessens downside. Majority of the financial managers are advocating anywhere from 3 to 10 percent in gold while bullish managers are suggesting to allocate as much as 20 percent in the said metal.

There are many types of gold options that you can invest on. You may use the money that you will get from but be sure that you’ll make the right investment.

Gold Bullion

Buy physical gold at different prices from bars, jewelry and coins. Some of the popular gold coins include but not limited to:

  • American Eagle
  • Gauden’s and;
  • American Buffalo

You may store gold in a bank safety deposit box or into your home. You may even buy and sell these metals at local jewelers while other companies let you keep gold with them and even trade metal. When buying gold bullion or coins, steer clear of high premiums.

Rather, you have to buy gold that’s close to the spot price or at least, 10 percent of premium. Basically, the higher the premium, the higher the price of gold will be. This translate to bigger profits of course.

Gold ETFs

ETFs are abbreviation for Exchange Trade Funds. This is a very popular way of acquiring gold in your investment portfolio without the challenge of storing the metal physically. You might want to do research of the respected physically backed exchange trade funds.

Gold ETNs

ETNs are Exchange-Traded Notes. These are debt instruments that are tracking index. What is done here is you give bank money for certain period of time and once it matured, the bank will pay you return as per the performance of what the ETN has been based on. If you have been investing in gold for quite some time, then you may consider taking this path as it is most likely used by those who have higher risk tolerance in gold investment.