How to Buy and Invest in Gold
Investing in gold can be a smart way to diversify your portfolio and protect against losses from other riskier investments. There are various ways to buy and invest in gold, each with unique benefits, processes and considerations.
Local Coin Shops
Buying gold from local coin shops is a quick and easy way to get your hands on gold. In addition, it’s ideal if you prefer a tangible, hands-on approach to dealing with gold. Some people prefer having physical possession of their gold, as it gives them a stronger sense of security in their investment.
Buying locally also gives you the ability to develop closer relationships with the salesman and local dealers which can lead to better deals and reliable sourcing in the long run. There are even major businesses, such as Costco and Walmart, from which you can purchase gold.
ETFs and Gold Funds
Gold ETFs allow investors to gain exposure to gold without physically owning it. These funds track the price of gold and are traded on stock exchanges like individual stocks. ETFs represent a simple way to buy gold, providing liquidity and the ability to trade shares during market hours. You can explore the best gold ETFs online to figure out which ones are best for you.
Mining Stocks
Gold mining companies offer another avenue to invest in gold without having to physically purchase it. Investing in gold mining stocks allows you to gain exposure to gold indirectly by investing in companies that mine and produce gold. These stocks can be profitable as they often outperform gold prices when markets rise.
Of course, like with any investment, there are risks involved. With mining stocks, your success is based solely on the well-being of the market which isn’t guaranteed to be profitable.
Estate Sales and Auctions
Estate sales, auctions and pawn shops can provide opportunities to purchase gold at below-market rates. However, these options tend to be best for those who already possess a solid understanding of gold valuation and authentication, as the purity of gold can vary greatly. If you’re interested in learning how to assess the authenticity of gold, there are lots of guides online.
Major Banks
Did you know that some major banks sell gold coins and bars? Purchasing from banks can be a safe and straightforward option to accessing gold for a variety of reasons. Investors who prefer the public accountability of a federally regulated institution will enjoy this avenue.
However, your options may be limited compared to what you'll find at an online retailer. You can call your local bank to find out if they sell gold, what to expect in terms of pricing and more.
Online Dealers
Online dealers often offer competitive prices on gold coins and bars due to lower overhead costs compared to physical stores. Plus, buying online gives you the comfort of researching and purchasing from the comfort of your own home. Reputable online gold dealers often provide live pricing, which is tied directly to the current spot price of gold, allowing buyers to make timely decisions based on market conditions.
Digital Gold
Digital gold platforms allow you to buy and hold gold in fractional amounts online. Companies like GoldMoney, or apps such as Paytm, offer services where you can buy small quantities of gold, which they store securely in their vaults. This option is ideal for those looking to invest in small amounts without worrying about storage.
Peer-to-Peer Marketplaces
Along the same lines, there are online platforms like eBay, Craigslist and Amazon that can offer opportunities to buy gold directly from sellers at potentially lower prices. That said, just like with any online purchase, make sure to be wary of scams.
Use your best judgment, don’t give out any unnecessary personal information and follow the rule of thumb that if a deal seems to be too good to be true, it probably is.