Investing in gold is one of the options that most seasoned traders consider when they are interested in diversifying their financial portfolio. It is considered as one of the safest ways for one to protect their savings as it is resilient from inflation as well as currency shocks that affect most investment instruments.
Investing in gold is high in Asian markets and done so in the form of buying jewelleries made of gold. As inflation looms and the global credit crunch is just around the corner, a solid investment can help one to have a steadier and more secured savings should the complexities of the market or inflation starts to settle in.
Gold Investment
Investing comes in different ways as there are different gold types that one can choose to invest in. Gold investment comes in buying bars, bullion coins, collectible coins, certificates, ETF, stocks and gold futures. An example of a bullion coin is the American Gold Eagle bullion coin which is produced by the West Point Mint and comes in four different sizes. The coins are legal tenders in the US and have different gold composition as well as silver and copper. Aside from the American Gold Eagle, one can also consider purchasing the American Gold Buffalo, Canadian Gold Maple Leaf, Australian Gold Nugget, British Sovereign, Chinese Panda and the South African Krugerrand.
Buying Gold As Investment
Before buying gold, it is essential that traders know about the type that they are interested in purchasing and their risk appetite. Some online trading platforms can help traders by having the trader go through a client suitability test to determine the risk appetite of the client. Although it is in high demand right now, there are some gold types that are risky such as investing in gold futures. Gold futures yield higher returns; however, it also includes a high risk on the investor’s side and is not suitable for first time investors or traders.
In purchasing gold, it is recommended to talk with a local gold dealer as one has the option to examine and purchase physical items such as jewelleries that have high gold composition. For those who are new to the trade, they can also ask for guidance from the dealer especially when it comes to the different gold available. For those who are not interested in purchasing physical gold, there are online dealers who offer gold stocks or certificates which is a straightforward way to buy without leaving the comforts of one’s home. One can also talk with a stock broker if they are interested in purchasing ETF, stocks or other gold investment types.