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5 Different Ways to Invest in Gold

 5 Different Ways to Invest in Gold

Stock market investments are very feasible if you are knowledgeable about market strategies. There are many people that are making great profits investing in the stock market. Here we are going to discuss how to make profit by investing in gold. People who gold traded in the stock market have been able to gain much by applying the right tactics. There are different ways that you can employ for investing in the lustrous metal. However, you must be very careful about gold investment as wrong strategy application will lead to poor returns.

According to some market experts, the future of stock market lies in gold. The value of commodities changes over time both positively and negatively but it is believed that the value of gold will change on the positive side. If you want to increase the value of your investment portfolio then you should seriously consider investing in gold.

When you are considering investing in gold traded in the stock market, you would get different ways. It is important for you to decide which one will be the right choice for you. Your decision would be based upon your level of familiarity with the product and experience of the market. The five ways of investment are discussed below:


1. Direct Ownership – The first way to invest in gold is to directly own it. You cannot get a better option than investing in gold bullion, where the investment is at its pure value. The value of gold can be determined by taking a look at history. If we read about earlier civilizations, we would understand that gold has been greatly valued by our ancestors. In fact, in Egyptian civilization the deceased pharaohs were buried with tons of gold in belief that it will help them in the afterlife. Gold has also been used as real money for ages in different civilizations all over the world. The main reason behind why people give so much importance to this lustrous metal is that the value of gold cannot be controlled or changed by money unlike other things. The value of gold depends upon its purity and its demand in the market. If you are looking to invest in gold in a secure manner then you should try direct ownership of this metal. However, you must remember that you cannot expect to turn a quick profit with gold. You would be buying rate at retail price but when you are considering selling it then you would have to do so at wholesale price which would affect your overall profit.

2. Gold Exchange Traded Fund (ETF) – People looking to invest in gold have an interesting option to invest by opting for gold ETFs. The ETF is a type of mutual fund that trades on the stock exchange market like an ordinary stock. The portfolio of an ETF does not change as it is exactly fixed in advance. Generally, the ETF holds gold bullion as its one and only asset. Gold traded in the stock market in the form of ETF allows you to hold gold in an investment portfolio.

3. Gold Mutual Fund – Gold mutual fund is a helpful alternative for people who are hesitant to invest in direct ownership of gold but still wants to invest in the precious metal. The gold mutual funds usually have hold of gold stocks in its portfolio. The companies offering gold mutual fund option has several years of experience and also has a profitable track record of the gold investment market. It is very important to invest in mutual funds from companies that have been operating in the market for a long time instead of investing in junior companies.

4. Junior Gold Stock – An investment option in gold that you can try is by investing in junior gold stock. However, you must be very careful when choosing this option. In this investment option you have potential of profits along with greater risk of loss. If you are confident about taking risks while keeping high profits on mind then you may consider investing in junior gold stock.

5. Gold Options and Futures – Gold options allow you to speculate in gold prices, so it is meant for the more experienced and sophisticated investor. The price movements in gold options are speculative, so choosing this option is risky. If you are considering futures then you should know that it is more complex, so if you do not have much knowledge about it then you should opt for a safer investment option.