While gold is no longer the standard on which countries base their currencies, it remains one of the world’s most stable and popular investment vehicles.
There are many ways investors today can put their capital into gold. There is the option for direct ownership, gold ETFs, gold futures, gold mutual funds, as well as stock in gold mining companies. Where you chose to invest in gold depends largely on your resources and temperament.
Gold derives its value from its unique characteristics. This precious metal neither rusts nor corrodes, it also has certain industrial applications, and it is an excellent conductor of electricity and heat. Perhaps the best known use for gold is in jewelry, as it is easily shaped and molded for this purpose, and has been prized as a symbol of wealth for centuries.
The Best Place To Invest In Gold
When determining the best place to invest in gold, an investor must first analyze their individual investment objective, and investing personality. When you have answered these questions you will be better suited to decide which option is right for you.
For conservative investors, direct ownership of gold is appealing because traditionally, gold has been thought of as a hedge against inflation. This option appeals to investors looking to have hard assets available. You must also consider where your bullion or coins will be securely stored. A safe or bank’s safety deposit box is usually the best place to safely store gold.
If you feel that you have a high tolerance for risk, you may be interested in the extraordinary profits that can be made by investing in the commodities market by investing in options on gold futures. With this strategy comes the potential for big rewards as well as big losses, and you must be certain that you are financially and emotionally capable of sustaining a significant loss.
If you, like many people fall somewhere in the middle, you may feel more comfortable investing your capital in gold ETFs and gold mutual funds. These investment vehicles provide a combination of both professional management and diversification.
Best Place And When To Invest In Gold
A member of the SIPC (Securities Investor Protection Corporation) is the best place to invest in gold no matter what type of gold product you decide is best for you. The SIPC offers a small amount of insurance in the event that the inherent brokerage firm fails. The SIPC does not, however, insure against the loss of your investment, nor does it guarantee investment results.
A full service investment company will normally charge investors a higher commission for their service, but typically offer a wide range of products and services, including advice and research in regard to each type of gold product and investment.
These brokerages often offer the collection and reinvesting of dividends from ETFs and mutual funds, as well as storage for coins and bullion.
Many online brokerages and discount firms may also provide the services required, however, you must be comfortable with making your own investment decisions, as professional advice may be limited or nonexistent.