There are a few different methods for how to invest in gold, but not all of these methods are created equally. In this quick strategy session, you will discover what the best ways to invest in gold are so you know exactly how to buy gold with the lowest fees.
The first way you can buy gold or invest into gold is by buying gold bullion. Gold bullion simply refers to actually buying physical bars of gold or coins. This is a bad idea for a variety of reasons.
First off, you have to keep your gold somewhere safe. The last thing you want to do is keep gold in the house as it is likely to get stolen and can raise your insurance rates. Storing it in a safe place is also expensive. Finally, buying physical gold is a bad idea because it is hard to sell.
Your next option would be to buy shares in a gold exchange-traded fund. This is a fund where the owners have bought and stored gold off-site and sell shares of that gold in exchange for a small fee. These fees are smaller than storing, buying, or selling the gold yourself, so it is a winning business for both companies. The only downside here is that these things can take on a life of their own and do not always match the price of gold.
Another option is to buy from gold brokers who sell gold directly around the spot price of gold. This is like Buillion Vault which basically combines the bullion and EFT approach. You actually buy the bullion, but the company holds the gold off-site. The bonus here is that the gold does sell much closer to normal rates, but the fees are slightly higher than ETFs. Still, they are lower than buying the gold yourself.
By using these three different methods, you now know how to invest in gold for yourself. Do not put all your eggs in one basket and only buy gold, but it is always good to have some of your portfolio dedicated to gold to protect against economic calamity.