When you look at investing in gold, you will see that many options are available to you, not just buying gold bullion. Firstly, you will need to keep up to date on the price of gold. There are websites that can do this easily for you and convert the price into Australians Dollars, or any other currency that you specify. Staying up to date with the latest news of the market is important before you decide which investment vehicle is most suitable for you. When you have done your research, and feel comfortable in making an investment, you will have to choose between the different options that are available.
Buying Physical Gold
You can buy gold bullion online at citygoldbullion.com.au fast and easy and have this delivered to you, or your storage facility. Many people prefer to own physical gold rather than some of the alternatives, but it is important to realise that this is not a short-term investment. Gold is usually used to safeguard people’s investment portfolios and is considered to be a long-term investment, and often a good hedge against inflation.
It is also important to consider where you will store your gold, as this could be something that you may have to pay for on a monthly basis.
Understand that jewellery is not considered a sound investment in gold, because quite often the price that you pay for the piece of jewellery is a lot more than the scrap value of the materials from which it is made. If you are investing in gold, and you want a physical piece of gold, then buying bullion or gold coins is the best practice.
Mutual funds are an excellent way at getting exposure to the gold market, without investing in physical gold. The funds will hold stock of companies that produce gold such as Newmont Mining, which is a senior player in the market and have a good track record, as well as plenty of experience.
Companies, such as these, own mines that are rich in gold and consistently reach production targets. You may get a better return with a newly established company, but with an increase in potential gains, so does the risk increase.
Exchange Traded Funds
Exchange Traded Funds are also known as ETF’s, and this is a type of mutual fund that is also traded on the stock markets around the world. The ETF’s will fix their portfolio in advance and do not deviate from this, and many ETF’s will hold gold bullion as their one and only asset. The ETF’s offer an attractive way of investing into the gold market without having to hold physical gold and are an excellent way to diversify your investment portfolio.
Options & Futures
The Options and Futures market is something that should be left for investors that have plenty of experience due to the planning that is required. Once again, it is important to note that this type of investment can give huge rewards, but with this, the risks are also high.
Gold may not be the kind of investment to give you fantastic returns immediately but should be considered as a long-term option. Before investing in gold, make sure that you do plenty of research, and speak to a financial expert before spending any money. With some intelligent planning, you can protect the future of your investment portfolio and ensure that your family’s investment will remain safe.