Gold is one of the world’s most popular investments, but many still wonder how easy it is to acquire. Well, despite the scarcity of gold, it turns out it’s not too difficult. This guide will show you the easiest ways to buy gold.
Jewelry is probably the easiest way to buy gold, but certainly not the most cost-effective. Gold necklaces, watches, bracelets, and more can easily be purchased online or in-store.
However, much like a car, resale value generally depreciates quickly after purchase. Higher-end jewelry will hold its value longer, but it’s more difficult to acquire.
Stablecoins are the newest way to start purchasing gold. As you may know, stablecoins are cryptocurrencies tied to the value of a physical asset. Gold-backed stablecoins such as Goldcoin are one such project.
Goldcoin and digital currencies allow investors the opportunity to buy partial amounts of gold, as the cryptocurrency represents fractional amounts of the asset. The decentralized nature of cryptocurrency also enables anonymous purchases – great for privacy’s sake.
Investments also come with storage. Goldcoin is stored in secure vaults, circumventing the expensive fees required to store traditional bullion. The platform conducts third-party audits as well, so you can rest assured your gold is stored properly.
Investing in a gold-backed stablecoin circumvents the need to store your own gold. While you can certainly get the gold shipped to your house, you’d need to spend on your own storage solution. Having this all in one is a fantastic plus.
The age-old way of buying physical gold is perfectly accessible as well. There are various mints and online exchanges for you to purchase physical gold.
However, it’s important to note that the scarcity of physical gold means it costs additional premiums. Not only will mints and exchanges charge you extra, but you’ll also have to pay for storage and shipping fees. If you’re investing in something this valuable, it’s going to cost extra to store it.
That might sound cumbersome, and for many, it might be. You can buy your own vault or pay for someone else to store it. However, some investors value that their funds are held in something they can physically touch. No government can have any control over that physical bar of gold. It is that investors bar to do what they please.
Gold Mining Stocks
While this isn’t investing in gold itself, purchasing gold mining stocks is a great way to circumvent the precious metal and its stability.
By investing in gold mining stocks, you’re opening your funds up to much more potential profit. After all, these companies can go up in price for various reasons, while gold is tied to that one price. Of course, there’s a risk to this as well.
For one, companies can go under at any time, as we saw this year, thanks to the pandemic. Also, if gold is doing poorly, these stocks might drop hard. That said, other factors can affect as well. You might see a gold mining company work with silver or platinum as well. If those are doing well, their stock can be affected positively.
That, and mining stocks are much easier to sell than traditional gold. As you may know, gold can be difficult to resell at a price higher than you bought it. This is because the asset is relatively stable in price. Gold mining stocks are much easier to sell on a stock exchange. That difference in volatility could provide you with earlier profits.
Gold futures are a gamble, but they’re incredibly accessible. These allow you to bet on the future of gold, earning big if you’re correct. That leverage is huge, especially because you can invest a small amount to start. However, the risk is somewhat high with futures. If you’re wrong, you’ll have to make up the difference, just like with traditional futures.
Now that you’re aware of the easiest ways to buy gold, do some more research and see which one is the best for you. Good luck out there, and stay safe while investing.