Gold has been considered a great investment for decades. It's been used as a rescue tool in times of financial trouble, including currency fluctuations, war, and even economic crises. But, if you're looking to invest in gold, you do not need to limit yourself to purchasing jewelry.
There are multiple ways by which you can invest in this precious metal. In this article, we shall explore some of the most profitable ways of gold investments. Buying gold bullion One of the ways many individuals invest in gold is through gold bullions. Bullions are basically bars or coins of real gold. Individuals usually buy these through some precious metal dealers or even banks or brokers. Gold bullions vary in size. You can buy a quarter-ounce wafer or a 400-ounce brick. New gold investors always look to invest in gold coins that are newly issued. These gold coins are priced based on the current cost of gold. They may also cost an additional premium. Some of the most widely circulated gold coins include the South African Krugerrand, American Eagle, and the Canadian Maple Leaf. Most buyers purchase gold from these brands as it provides authenticity and maximum liquidity. Make sure you purchase from a reliable dealer, irrespective of the kind of gold bullion you want. Don't forget to keep your gold bullions in the bank safe deposit box and insure them to prevent any losses. Investing in jewelry Gold jewelry is another popular way to invest for profit. This option allows investors to not only invest in the precious metal but also use it as a wearable accessory. Gold is often paired with other precious stones, metals, and gems to add value to the piece of jewelry. Another great thing about gold jewelry is that it can also have sentimental value. Individuals can gift them to partners or pass them down from generation to generation as a family heirloom. Note that jewelry is not always a great investment when it comes to gold. This is because the retail price of jewelry always exceeds the value of gold. This is usually due to the craftsmanship involved in making the jewelry and the retail markup. If you invest in gold jewelry, don't forget to check the purity of gold. Opt for gold funds Another popular gold investment option is gold funds. Gold funds are a liquid and low-cost option to invest in gold. They are usually sold in the form of mutual funds and exchange-traded funds that mirror the value of physical gold. Note that gold stocks usually fall and grow much faster than the actual metal. It can also pose certain risks in terms of political and environmental factors. That said, it is usually considered better than physical gold in terms of appreciation and cost. Check out gold futures options If you're someone who has great experience in investing and does not want to risk a lot of capital, you may want to take a closer look at gold futures options. Gold futures or option is basically a contract representing the right to buy or sell a gold asset at a specific price for a certain amount of time. You can make a contract based on when you think the price of gold will rise or fall. The only risk associated with this option is the premium that you pay for the contract. Get gold mining stocks If you do not want to invest in physical gold or any other gold investing options, you can try investing in gold mine stocks. Note that these investments move differently compared to bullions. These stocks rely on the performance and functions of the company rather than the price of gold.