Tags: Money | gold | investments | limited budget

Five Best Gold Investments for Those on Limited Budget

By    |   Wednesday, 17 June 2015 07:45 PM

Unlike paper money or coins, gold has maintained its value throughout the ages, according to Investopedia. Former Federal Reserve Chairman Alan Greenspan predicted in October 2014 that gold’s price would rise measurably during the next five years.

As the value of gold is nearly the same now as then – $1,189.95 an ounce on May 30, according to Gold Price – Americans appear to face a golden opportunity to invest in the metal of kings. Still, not everyone can afford to buy a gold bar.

Here are five options for investors on a limited budget.

1. Gold Coins
Individual coin, such as the Gold Maple Leaf or American Gold Eagle, will increase in value as long as the market price for gold increases, said Today's Seniors. Buying gold coins involves smaller amounts of gold than other investments, making it a more suitable choice for beginners, according to Gold Investment Guide.

2. Gold Jewelry
Gold Investment Guide also counted jewelry among suitable gold investment strategies for beginners because of its smaller amounts of gold.

3. Exchange-Traded Funds
Seeking Alpha calls exchange-traded funds one of the easiest ways to invest in gold. These funds trade on a stock exchange with a fixed portfolio. The two gold ETFs that trade in the United States both hold gold bullion as their only asset, according to Daily Reckoning. ETFs allow investors to take part in the gold bullion market without needing to take physical delivery of gold, USA Today reported.

4. Gold Mutual Funds
Mutual funds allow investors to take part in gold markets by investing in companies that mine for and sell gold. Daily Reckoning said these funds add stability because they tend to include firms that own established mines that produce known quantities of gold each year.

5. Junior Stocks
Invest in junior gold stocks, if you don’t mind taking risks. Junior gold stocks are more speculative and less likely to be linked to productive mines, said Daily Reckoning. Investors must accept the risk of losing money but they also face the potential reward of triple-digit gains, that website said. Still, gold "penny stocks" are a low-budget method of investing in gold, said Gold Investment Guide. The website added: "Most investment advisers recommend purchasing stock in about 10 mining companies; any fewer and you are putting too much risk on too few companies, and very many more and you are spreading your wealth out a little too thin."

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Unlike paper money or coins, gold has maintained its value throughout the ages, according to Investopedia. Former Federal Reserve Chairman Alan Greenspan predicted in October 2014 that gold's price would rise measurably during the next five years.
gold, investments, limited budget
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2015-45-17
Wednesday, 17 June 2015 07:45 PM
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