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Five Easy Gold Investing Strategies

By    |   Sunday, 12 July 2015 11:58 AM

There are several easy ways for an investor to get into the gold market, and gold can be valuable to a diversified portfolio. It's not a recommended strategy for retirees, some analysts caution, but can work for those investors who welcome staying in the gold market for a long haul.

Here are five easy gold investing strategies.

1. ETFs
By choosing ETFs (exchange-traded funds), a prospective gold investor can ease into the marketplace, purchasing as little as one share of stock. It's a safe choice and one for those who are frugal, with annual expenses that remain low.

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2. Gold Mine Stocks
Buyers can also purchase gold stocks from companies that mine gold. This requires more care in choosing solid companies with strong track records for production. According to USA Today, such stocks can be volatile, rising as the price of gold goes up and tanking when gold falls. They remain good picks, however, for short-term investors.

3. Gold Coins
Some prefer purchasing gold coins themselves over stock, although physical gold has some drawbacks, U.S. News & World Report noted. For such coins or even gold bullion to increase in price, metal prices also have to go up, so the investor is reliant on market forces. Gold owners don't get the benefits of a cash flow or interest. One upside: gold prices remain the same the world over.

4. Set Monthly Contributions
If you make a decision that you want gold in your investment mix, set up a strategy where you commit to putting 3 percent to 10 percent of your dollars into gold each month — no matter gold's current price, TheStreet.com suggests.

5. ETNs
More risky but still flexible are gold ETNs (exchange-traded notes), which track alongside an index. Investing in these is akin to playing the futures market, TheStreet.com says. They can be traded long or short. Investors simply turn a selected amount of funds over to a bank and when the ETNs mature, you get a performance-based payout.

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There are several easy ways for an investor to get into the gold market, and gold can be valuable to a diversified portfolio.
gold, investing, easy, strategies
Sunday, 12 July 2015 11:58 AM
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