3 Ways You Can Invest In Gold

Gold started its bull market back around the year 2000. Since then it has gone from roughly $200 an ounce to $1600 an ounce. Many leading investors believe that there are many years left in this particular bull run. Therefore in this article, I will go over the many ways you can invest in this precious metal.

First which is probably the safest way to invest in Gold is to buy the physical metal and store it accordingly. By doing this, you are protecting your purchasing power assuming of course that gold will continue to go up in price in dollar terms. The one drawback of this option is the storage fees. In saying that, this option is by far the safest way to invest as once you own physical, you have 100% control over your investment. I definitely recommend this strategy especially for non traders and investors.

The second way you can invest in Gold is by investing in the etf´s on the stock market. For example the biggest gold etf is GLD. For every share of GLD that you buy, the fund buys the equivalent dollar amount of physical and stores it at their premises. This is a more liquid way of investing. The advantage of this option is that you can buy and sell really quickly. This option suits traders who like to trade gold on a short term basis. Long term is fine also as the fund will track gold´s price. I suppose the one drawback is that you don´t have 100% control. You do not own the physical metal. Its like owning a house or investing in a fund that owns houses.

The third way you can invest in the precious metal is by investing in some of the mining stocks. These companies mine the metal up from the ground and are all listed on the stock exchange. This in my opinion is where you need to invest in a mentor. When you invest in individual companies, you need to have extensive knowledge on the company in question. Things such as inside knowledge, management experience, production time-lines, etc.

Mining companies in my opinion can provide you with the biggest returns on your investment but you obviously need to invest in the right ones. Don´t ever here load the boat by investing solely in one company. This is a recipe for disaster and if the company goes bankrupt, your portfolio will get totally wiped out. Obviously if the price of Gold keeps on going up, the mining companies have a lot to gain as they own the stuff in the ground. Ones with excellent mines, excellent organization and Leadership will flourish in the years ahead.