Discover the Best Gold Investment Companies in USA
James Lawson- Investors buy shares in a gold investment company in order to buy gold at lower prices than if they bought direct.
- Gold investment companies allow investors to buy and sell gold as a regulated security.
- Gold investment companies are popular because investors can buy gold at a lower price than they would if they bought direct.
Investing in gold through gold investment companies is popular among investors. Gold investment companies such as SPDR Gold Shares (GLD) or iShares Gold Trust (IAU) allow investors to buy gold at a lower price than they would if they bought direct. Similar to a mutual fund, gold investment companies collect money from investors who buy shares, then invest that money in gold.
What Are the Different Types of Gold Investment Companies Available?
There are two main types of gold investment companies:
Gold mining companies do not require investors to purchase gold, only the company's stock. These companies sell gold, but they purchase gold, too.
Precious metal exchange-traded funds (ETFs) track the price of gold. Investors buy shares and own a part of the gold that is held by the ETF. Investors can buy ETFs in physical gold, or they can purchase shares in gold futures contracts.
What Factors Should I Consider When Choosing an Investment Company?
When choosing an investment company, there are several factors to consider.
Fee Structure: You should always be aware of any fees that may be charged to you, as well as any fees that are charged to other investors.
Company Profile: Before investing in any investment company, you should understand the company's investment philosophy, which mutual funds are available, and which portfolios the company offers.
Performance: Comparing an investment company's historical returns to those of similar investment companies, mutual funds, and indexes can help you determine if the company is performing to your expectations.
Credibility and Reputation: Learn as much as you can about an investment company, such as how long the company has been in business, what types of products it offers, and what type of clientele it has.
How to Compare Gold Investment Companies
Gold is not a traditional asset class, so there are a variety of gold investment companies in the market. Some of the most common gold investment companies include:
Gold ETFs, such as SPDR Gold Shares (GLD)
Gold certificates
Gold mutual funds
Gold certificates are paper instruments that guarantee a share in gold. They are not traded on an exchange and typically come with high fees. Gold ETFs are traded on a traditional stock exchange, and they are often regarded as being very similar to mutual funds. The ETFs track the price of gold, which fluctuates on a daily basis. Gold mutual funds come in both actively managed and index options.
