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Investing in gold stocks, ETFs and gold coins
Gold has been an investment diversification vehicle for many investors.
Investing in gold has also become popular due to economic uncertainties. When the currency goes down in value, gold generally moves up giving you some protection.
Also, some gold investments like stocks and ETFs pay passive income thru dividends.
Today, there are different ways to be invested in gold without having to buy jewelry or any other physical forms of the metal.
However, gold is not a fool proof way to protect yourself from financial disasters.
Like any other investment, investing in gold carries some risks, its price can be unpredictable.
For the beginner small investor affordability may be an issue. Two of the most affordable ways to invest in gold is thru ETFs and Gold Coins.
After considering the risks, the following gold investment options may be suitable for the beginner investor.
Gold investment options for beginners in this post;
- Best ways to invest in gold for beginners
- Investing in gold stocks
- Investing in gold ETFs
- Invest in gold coins
- iShares Gold ETF
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- Simple ways to investing in index funds
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7 Ways to Start Investing in Gold for Beginners
Individual gold shares of stocks – If you’re interested in owning individual gold stocks, using a stock broker account you can buy and sell gold shares.
Gold mining stocks are generally the more popular shares to hold. There are also the gold royalty and logistics type of stocks available for investments.
Many of these stocks also pay dividends which is a plus if you’re looking for passive income.
Investing in gold ETFs – ETS are a group of stocks you can invest in. These are generally very diversified in type and size of companies.
Gold ETFs – One way to invest in gold is by buying gold ETFs. These types of shares specialized in holding gold companies.
Some of these are the SPDR Gold Shares, GLD, Aberdeen Standard Physical Gold Shares ETF, SGOL and VanEck Merk Gold Trust, OUNZ.
iShares Gold Trust, IAU – this is a special trust that tracks the price of gold. Shares can be purchased thru a stock broker account.
Precious metal ETFs – A second way to invest in gold ETFs is buying one specialized in precious metals, natural resources, commodities that also contain gold stocks.
These are more diversified ETFs because they also invest in other metals and natural resources.
These ETFs can be purchased at mutual fund companies. Some of these are Vanguard, T Rowe Price and Charles Schwab.
Mutual funds – these funds are similar to the ETFs in investment styles, however the shares are priced once a day, generally at the end of the business day.
The ETF shares are priced thru out the day, just like stocks.
Gold mutual funds can be purchased at mutual funds companies like Vanguard, T Rowe Price and others.
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Investing in Physical Gold
For investors comfortable with holding gold in physical form, gold coins and bullions are sold thru dealers. Examples of these dealers are Kitco.com and Monex.com.
How do you safeguard physical gold? Some dealers also offer a service to keep and safeguard your physical gold in trust. This is a separate service and there is generally a fee for it.
Investing in Gold Coins – Precious metal coins are very collectible by investors and by hobby collectors.
Popular coins include Antique coins, old pennies and sovereignties. The American Eagle coins, The Canadian Maple Leaf and Britannia Gold Bullion coins are some of the popular sovereignties coins.
Where can you buy gold coins like the American Eagle, Britannia and the Canadian Maple Leaf?
The US Mint – you can buy gold and other metals American coins directly from the US Mint. The Mint also sells American Silver coins.
The Canadian Mint – for Canadian collectibles coins like The maple Leaf, you can buy directly from the government’s mint.
The Royal Mint – you can buy UK gold coins at the Royal Mint. Popular coins include the Britannia 1 oz Gold Bullion and the Britannica 1/10 oz Gold Bullion Coin.
Coin Dealers – You can also buy collectible coins thru coin dealers. The American Numismatic Association, ANA, has a list of antique dealers, some of them dealing in old collectible coins.
The most popular American gold coin is the American Eagle One Tenth Ounce Gold Proof Coin.
The Canadian Gold Maple Leaf is also a popular coin with collectors and investors,
Online gold and coins dealers like Kitco and Monex also sell gold and other collectible coins.
Gold Bullions Investment
Gold bullions is another way to own gold in its physical form. You can buy these at Bullions and Precious Metals Dealers. Also, Kitco.com offer bullions for purchases.
The ANA has a business listings with dealers in bullions and precious metals.
Investing in gold is mainly a way to protect your portfolio against inflation and other economic disruptions.
Some of the best ways to invest in gold for beginners is by buying the metal indirectly.
Ownership via stocks, ETFs, Mutual Funds and collectible gold coins help you diversify without having to worry about physical security of bullions.
Before buying bullions or gold coins, make sure to do due diligence to secure a reputable dealer.
Consider the risks before investing in gold. The value of whatever gold financial instrument you buy can go up or down with the price of the metal.
7 Ways to start investing in gold as a beginner investor
- Gold stocks
- Gold ETFs
- Gold iShares
- Precious Metal ETFs
- Gold Mutual Funds
- Gold Coins
- Gold Bullions
Disclaimer: The stocks, ETFs and companies mentioned in this posts are used for information and educational purpose only. These stocks and companies are not recommendations to buy or sell.