Looking for the Best Gold for Investment
James Lawson- Gold can be a valuable investment, but it's important to keep gold as close to its natural state as possible.
- Gold is non-reactive, making it useful for jewelry, electronics, and currency.
- Gold is a relatively safe investment vehicle, but it carries additional risk that investors should be aware of.
Gold, an inert metal that has been used frequently for jewelry, coins, and currency, has been a favorite investment vehicle for investors and collectors for centuries. Gold's luster and value makes it an attractive investment vehicle, but it's important to remember that investing in gold is a long-term proposition.
Gold Investing
Investing in gold bullion has been a popular way to gain exposure to gold. These coins and bars are available as bullion and collectible versions. Some investors like to collect coins from a specific era, some like to acquire gold bullion coins for their limited mintage, and some simply want to own gold to create wealth.
The gold bullion coins and bars serve as physical representations of gold and can be traded like stocks on stock exchanges. The resale value of coins and bars is often based on the spot price of gold.
Bullion coins and bars can be traded on stock exchanges, but they can also be bought and sold privately. You can typically find bullion coins and bars at coin shops, pawn shops, and jewelry shops.
Buying Gold for Investment
When you search for Gold for Investment, you should know which type of Gold you need. Gold bullion is available in many forms. Gold coins, bars, and rounds are the most popular forms.
Gold coins are attractive for collectors, and investors looking for coins can add to their investment by buying more coins as the market price rises. Gold rounds are one-ounce, mirror-image coins. While they don't collect dust, they don't trade at premiums above the spot price.
Gold bars are available in various weights, and for each weight, buyers can choose their purity. Each ounce of Gold is stamped with the purity of the metal, and bars contain either .995 or .9999 purity. The higher the purity, the higher the premium.
The price of Gold bullion has fluctuated quite a bit in recent years. The precious metal reached an all-time high of $1,924.00 in September 2011. By early 2016, the price of Gold had fallen to less than $1,200.00. The price of Gold has ranged from around $1,150.00 to $1,350.00 throughout 2017.
Gold Fund
The SPDR Gold Trust (GLD) is the most popular gold exchange-traded fund (ETF) in the world. The ETF holds physical gold bullion, giving investors the option of holding gold as a tangible commodity. GLD trades at $151.95, up 2.31% on the day (as of 2:05 p.m. EDT).
401(k) Plans
Gold is an attractive choice for 401(k) investors. Unlike retirement accounts offered by traditional employers, 401(k) accounts allow investors to buy a diversified portfolio of precious metals.
These accounts typically require a minimum investment of $1,000 and may include gold that can be purchased in the form of coins, bars, or 401(k)-approved ETFs.
IRA Accounts
Investors wishing to invest in gold through an IRA account are limited to gold coins and bars, and must adhere to certain IRS restrictions on the type of bullion that can be purchased.
Gold IRA
Gold bullion or gold bullion coins are perhaps the most popular forms of gold investment.
Gold bullion coins come in different sizes and denominations, all of which contain gold. The most popular sizes are 1 oz., 10 oz., and 1 kilo. The 1 oz. coin is the most popular gold coin due to its relative value and its availability.
Gold bullion coins can be purchased either from mints or from a dealer. Generally, dealers offer better pricing than what the mints offer, and dealers tend to offer more options for acquiring bullion.
Gold IRA: Should You Open One To Save For Retirement?
The Bottom Line
While almost everyone has heard of Bitcoin, other cryptocurrencies and precious metals, it may surprise you to learn that these assets can be traded as stocks.
Read more:
Trading Tips for Active Traders: 5 Ways to Get More Done
How to Hedge Gold With Bitcoin: 3 Options
5 Reasons the Market Is Overvalued Right Now
