Best Way to Buy Gold? ☛ Sorry If Our Answer Shocks You!
Looking for the best way to buy gold? Stick with us, all will be revealed below…
There was a time decades ago when buying gold was thought to be something subversive that people only did when they were planning a great escape or had ulterior motives. Right now, you can purchase gold without looking like you are planning a conspiracy against the state or someone else.
These days, buying this precious metal is a form of investment. Instead of just purchasing the first gold that you see, however, you need to pay special attention to various investment products that are available. It also helps to know the best way to buy gold to ensure that you have a smooth transaction and can avoid getting ripped off by an unsavory scammer, of which there are plenty online in this day and age.
One of the reasons why you probably want to purchase gold is because you know that, in those times when paper money is not considered a good investment anymore, gold is one of those things that you can invest in that can actually keep your money intact and maintain value over time. Do remember that this will depend on the time when you plan to purchase the gold and when you are going to sell the gold.
The price of gold is somewhat tied to the financial industry, thus its price fluctuates similarly to stocks. What is good about gold is that a lot of people recognize it as one of those elements that has real value, whether banks agree with it or not. If you are more determined than ever to purchase gold, you obviously want to know the best way to buy gold, as some of the ways available are better than others.
Different Ways to Buy Gold
If you think that investing in gold may not give you a lot of options, then you are mistaken. There are different ways through which you can buy gold; you just have to know the main reasons how and why. Below are some of the more common purchase methods.
ETF (Gold Exchange Traded Funds)
The thing about this type of gold stock is that it is similar to the regular type of stocks that you see on the market. Do remember that the exact portfolio of the ETF has already been fixed in advance. This means that it will not change.
This type of investment has gained a solid following over the past years because people see it as an easier way to have a gold investment without actually having the gold in their house or at the bank.
At eGoldAdvisor, we are not fans of EFT or “paper gold”. We believe that the only kind of gold investment that is safe is one that you can hold. Or at least take delivery of, should you want to. The reason for this is that you never rightly know how much physical gold is backing the EFT funds. You may trust the bankers that run these but we certainly don’t, after their performance in 2008!
Gold Mutual Funds
This is almost similar to having ETF because of the fact that physical gold will still not be there. What will be done when you plan to make this type of investment is that you will invest in companies that are holding onto some gold or companies that you are aware of that mine the metal. Do remember that if you plan to invest this way, you have to make sure that you will be investing in a company that you know can withstand the tests of time. There are some companies that are considered to be more established than others. First Eagle, GAMCO, and Van Eck are smart options. Choose the right company with the help of a broker if needed, and your investment can go a long way.
Junior Gold Stocks
This is the type of investment that you may want to do if you are a risk taker. In essence, junior mining companies are exploration companies that look for new sources of metals, and there is no guarantee that they will find them like there is with an already established mine.
Purchasing this type of stock can bring in a lot of loss if the company does not uncover any new sources of metals. The main reason why some people are tempted to get this type of stock is because if new gold is discovered, it does become bigger and the stocks become stronger, so the profits are also huge. If you are the type of person who does not mind the risks or is willing to take a chance in the company that you are going to invest in, this may be the right type of investment for you.
Is Owning Physical Metal theBest Way to Buy Gold?
For people who are not too fond of having stocks or funds that are related to gold and would like to own the gold directly, this is possible too. There are plenty of gold sellers online and with storefronts around the country. If you want to own physical gold and invest in a tangible product, it’s a worthwhile endeavor to check out a gold-selling site such as Regal Assets. They and other companies specialize in precious metals of all forms, whether you are interested in coins, bars, or PAMP grams. In addition, Regal Assets offers other metals including silver, platinum, and palladium, so you easily can diversify your investments and have them shipped directly to your home at your discretion.
These gold sellers aim to give people the best deals possible and at the same time profit from the transaction, so you will likely pay more than the spot price. If you plan on doing this, you have to research the different types of gold and which are the easiest to sell when the time comes that you want to get money for them again. Do remember that the value of actual gold may increase or decrease depending on the supply and demand for it.
You can choose to purchase gold bars, gold nuggets, or minted coins. Aside from this, you also have to know where you are going to store your gold. You may have to purchase your own safe that you can hide somewhere at home, or you may choose to store it inside a bank, but you may have to pay more for this. Weigh the pros and cons of direct ownership and decide from there.
Gold Prices and Options
This is only possible for investors who have already done a lot of investments for a long period of time. Knowing the right time to sell and to purchase gold is highly necessary in order to increase the maximum amount of profit possible with options because they specify time periods. Do remember that, while gold options may be a good form of investment, there are instances when they turn bad because the options expire. You need to understand calls and puts before you attempt this.
Best Way to Buy Gold: The Verdict
Now that you have a clearer idea about the different ways through which you can buy gold, what is the best option for you? As stated above, we firmly believe that owning physical gold is by far the safest and best way to buy gold. The decision is up to you, but you may want to contact a trusted company like Regal Assets for further advice and information.
Now that you know the best way to buy gold, you can go ahead and check out our top 10 best gold companies or get started now with our #1 recommended broker.