Friday, 3 January 2014

Ways to Invest in Gold

If you were dealing in several stocks till now and want to bring some diversity in your investment, gold investment might be a good option for you. Investing in varied fields has various benefits one of which is staying safe at time of market fall or imbalance. Gold market is always considered as a better option when the rest of the stocks are not doing well. The reason for this is that gold has an inverse relation from all other stocks. There are various ways how you can make an investment in gold. Here are some ways how you can make an investment in gold.

Ways to Invest in Gold

ETF (Exchange traded funds): ETF’s have helped to make several commodities available to the average investors and gold in one of them. These are easy to deal with funds with high transparency, low tax and less expensive too. ETFs have a variety of types to choose one investment module out of them.

Stocks: Manu investors would prefer to directly deal in gold stocks.  The mining and exploration companies are more into such stocks and an individual who wants to invest in gold stock can buy those stocks from these companies. These companies provide you with strong dividend options and unmatched liquidity for traders.

Gold Bullion: Investing in gold bullion would be the easiest and the safest way to invest in gold. This is where you directly invest in physical gold. However, when buying physical gold it would be costlier depending on the amount of gold you are buying. There are certain advantages of such investment though. It allows you to know exactly where you have invested and keeps you aware of the present worth of the gold bullions you own. Moreover, it provides you instant access to the metal you have purchased at any point of time. The only hectic task that comes along with the bought bullion is the safety issue. You may need a safe place to store those gold bullions as gold is a precious metal. You can buy bullions as coins or bars. Coins may range from one ounce to more. Bars are dealt by big investors. Standard gold bullion is of 400 troy ounces. If your money is burning a hole in your pocket there are larger gold bars too.

Futures: Futures are not meant for normal investors as it is a rather complex way of investing in gold. It was the original method of getting exposure to commodities. It is one of the most powerful tools of trading if you are well aware of the trading methodology.

Mutual Funds: It is a way of dealing with various assets gold being one of them. Mutual funds are really oceanic and thousands of investments are supported by it. It has options for investing in gold too. Out of many positive points, the biggest fact visible on its face is the high dividend payments that one can earn by investing in mutual funds. A considerable fact accompanying gold investment through mutual funds is that if you are just a small investor, you would rather go for another option as mutual funds are planned to restrict investors who are not very serious in their investment work. So, they have a minimum investment plan under which investments are not accepted.