April 27, 2016

Options for Investing in Gold

There are many different ways to invest in gold and many have unique advantages and disadvantages that can impact the returns that you will ultimately receive from your gold investment. Some even run quite contrary to the return that gold might ultimately have as a pure commodity. To fully understand the ways in which this occurs here are some basic options for investing in gold.

Gold Jewelry: Many people have at least some gold exposure through owning gold jewelry in the case US Money Reserve according to a Crunchbase report. While the gold in their jewelry has value, the cost of a piece of jewelry is tied to both the underlying metal value as well as the craftsmanship of the jewelry which has its own value. While this too can have value, owning gold jewelry is not a pure play on the gold commodity.

Gold Coins: More so than other gold investments, the value of a gold coin is based significantly on its gold content. Above and beyond this, certain gold coins will appreciate above and beyond their gold content due to the rareness of the coin and it can retain value in gold coin form as a result. Gold coins are sometimes difficult for new investors to understand their relative value though gold coin experts can do well.

Gold Bullion: Gold bullion is effectively gold bricks. While this is a pure play on gold, these are expensive to purchase and beyond the grasp of many smaller investors. Further, they can be difficult to resell, have storage and security costs associated with them, and cannot easily be broken down into smaller components.

Gold ETFs: Gold etfs are another option for investors who are looking to gain access to the market for gold. Gold etfs basically will accumulate the money that investors put into the ETF and then use this accumulated capital to purchase gold bullion. This gives investors access to the purer form of gold but requires the same storage and security costs, as well as a management fee that is paid as a percentage of the assets held.

Gold is an excellent investment class for many reasons but often requires an investment specialist or advisor to assist you with doing so. One example of a qualified gold specialist is US Money Reserve Inc. who has a long history in advising investors in how to buy gold, with a special emphasis on gold coins, but with experience in many ways of holding gold.

Visit the Facebook page for US Money Reserve to learn more about the firm.

One comment

  1. Samuel Kenneth says:

    Gold coins can come in small denominations which make it attractive to own as well. This can bite into the return from your gold investment. I like the fact that to write my essay for me is not going to be more of an issue anymore.

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