The most popular way to invest in Gold
There are currently 9 recognized precious metals. But only Gold, Silver, Platinum and Palladium can be considered investment commodities. Investors are most familiar with the four golds. Because gold is the original currency, the paper currency that was used to represent it has been essentially a promise of payment in gold. Investing in gold can be a popular way to protect your assets against national and international recessions. Let’s face the facts, if the world began over after a major crisis and there were only one society, gold will still be the currency common to all of them. Below is a list with a brief description of the top ways to invest in gold IRA retirement.
Buying gold coins is the most popular way to invest in it. While gold bullion coins are priced according to their weight, there is always a premium. There are many options for buying or selling gold coins. Online purchases are also possible.
Gold bullion bars, which are also known as gold coins, can be purchased and sold over-the-counter in most Swiss banks. Special orders are possible in many other banks. You can also purchase them online, as well as from local dealers. Because of the difficulty involved in transporting and storing gold bars, investors are not as interested in them. They are still my favourite and offer a higher premium than gold coins.
You can trade gold in a similar manner as foreign currencies with a gold account. You can either have your gold account backed by NON-fungible (allocated), gold storage, or pooled (unallocated). Leverage may also be possible when purchasing gold. However, it is risky because gold can go up and down. If you take too much leverage, you might have to make more margin calls or risk having your gold stolen at a loss. In the event that gold goes through a correction, you should treat the entire amount of leverage as an investment.
An investor may also choose to invest in a golden certificate instead of buying gold bullion. However, this means that the gold bullion must be stored and/or protected against theft. A gold certificate lets the investor buy and sell the commodity. This eliminates the difficulty of owning real gold. Unfortunately, physical gold is not available to you.
GETFs (the gold exchange traded funds), also known as GETFs are open-ended, non-physical funds that provide a secure and cost-efficient way for investors to buy gold bullion. Trading GETFs resembles trading shares on any stock exchange around the globe. GETFs also require payment of storage fees and commissions. The sale of a certain amount (representative of the certificate) of gold is what incurs expenses in handling the fund. With the hope that gold prices will increase, the amount of certificate gold will fall over time. This makes the certificate worth less than its original investment.