Tags: Money | gold | physical | stocks

Should I Own Physical Gold or Gold-Related Stocks?

By    |   Sunday, 12 July 2015 09:54 AM

Gold-related stocks typically offer a safer investment route over ownership of physical gold, but both have pros and cons.

According to Yahoo! Finance, gold stocks — ETFs or single stocks — offer "identifiable cash flows," which physical gold cannot.

Yahoo! noted that data gleaned from 2007 to 2013 showed that gold prices beat share prices of gold equities. But it noted that investing in the commodity can be volatile.

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One reason that gold investment can be complex, according to MarketRealist.com, is because predicting its future prices is difficult with multiple issues around the world affecting its ebb and flow.

Many analysts consider holding some gold as a part of a total investment portfolio a good idea as gold prices tend to go up as consumer prices rise.

Gold stock value is tied to a mining company's health, and such stocks are typically more stable, according to Income.com. But physical gold itself will retain value, despite market fluctuations, with buying and selling occurring at the same rate the world over.

The Wall Street Journal reported that gold has fallen off after a 2011 high of $1,888.70 an ounce. Prices could dip even more when the Federal Reserve acts to increase interest rates, expected by some analysts later this fall. Until then, the stock market continues to be energized with money flowing from investors, the Journal added, noting a massive rise in equities.

According to data from the World Gold Council, world demand for gold went up 4 percent during 2015's first quarter.

The Journal added that those who purchased physical gold in the past four years have lost while those who invested in stocks should be well-rewarded.

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Gold-related stocks typically offer a safer investment route over ownership of physical gold, but both have pros and cons.
gold, physical, stocks
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2015-54-12
Sunday, 12 July 2015 09:54 AM
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