What is Gold Investing?
Gold investing involves the buying and selling of gold mainly for the purpose of hedging against any economic, political, social, or currency-related crisis, such as a stock market crash, high inflation, war, or any form of social unrest.
Sources for Gold Investing include:
The traditional way of gold investing is by buying bullion gold bars. These can be easily bought or sold at major banks. Bullion dealers provide this service too.
Buying gold coins is a common way of investing. Bullion coins are priced according to their fine weight. A small premium based on supply and demand is payable.
3. Exchange-traded Instruments
Gold exchange traded funds trade gold like stocks on the major exchanges.
Gold certificates allow gold investors to avoid the risks and costs associated with the transfer and storage of physical gold.
These are offered by gold bullion banks, and include an allocated or unallocated account. In an allocated account, the gold is physically stored in a vault. In an unallocated account, investors do not have specific bars allotted to them.
6. Gold-oriented Funds
Nowadays, several mutual funds specialize in investing in the shares of gold mining companies.
7. Structured Products
These include bonds that are linked to gold, and structured notes, which provide capital protection.
8. Derivatives, CFDs, and Spread Betting
Derivatives, such as gold forwards, futures, and options currently trade on various exchanges around the world. They trade over-the-counter in the private market.
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