Gold is a popular investment, particularly during bad economic times when it typically acts as a counter to down markets. People often purchase gold as a hedge against these down turns as well as a way of limiting inflation risk and it is highly recommended to purchase at least some gold for your portfolio. But what is the best method for holding gold? There are many options each with their pluses and minuses.
Gold bullion is the purest form of gold that can be owned and is basically just a gold block. While this provides pure exposure to gold it needs to be stored and maintained and is only available in set denominations. While owning gold bullion makes sense for some individuals, it doesn’t for all and in particular smaller sized investors who have to turn to alternative ways of investing.
Many smaller investors will turn to gold electronically traded funds (ETFs) that purchase gold bullion and store it on behalf of the investors. While this provides investors with the benefit of the pure exposure to gold and no additional time spent to store the gold, gold ETFs do charge a management fee for their operating costs.
Some people choose to invest in gold mining companies but the value of these companies can be significantly impacted by factors outside of the price of gold. This can be good or bad depending on the underlying company and their success in mining, as well as their management’s competence. This can be confusing to a new investor who is not familiar with gold markets and trading and expert advise is often needed to find the right gold investments.
Finally, other options include purchasing gold jewelry and gold coins and holding these as investments. There are unique benefits and risks to each as both can retain value above and beyond the intrinsic value of the gold in the coins themselves and can be repurchased into bullion if their value declines below the value of gold. However, it sometimes takes an expert eye to understand and locate bargains with gold jewelry and coins.
Gold investing, as we have seen, can be confusing and it is important to gain the expertise and experience of professionals to help to locate the best way to invest, given your unique situation. That is where a firm like US Money Reserve, Inc. can step in and provide you with the assistance that you need in locating the right gold investments and understanding how to purchase gold in the best way for you. Reach out to US Money Reserve, Inc. to learn about the services that they offer to current and potential gold investors so that you can gain the gold investments you need for your portfolio.