Learning “How To Buy Gold for Investment“ is easy. And in this short blog post I’ll share the most popular ways you can buy physical gold for investment. You’ll also learn how to buy exposure to gold in a few other interesting forms that might be of interest to investors and stock traders.
So why should you learn to buy gold for investment?
Knowing how to buy gold for investment can help you diversify your stock portfolio and provide a bit of a hedge against fiat currency and economic uncertainty. While I would not advocate buying massive quantities of gold, using a small percentage of your portfolio to buy gold can give you all the upside exposure you need.
How to Buy Gold Bullion and Coins for Investment:
When people ask how they should buy gold for investment, they are usually talking about physical bullion and gold coins. Unlike some of the methods for buying gold listed below, when you learn how to buy physical gold you get the comfort of a tangible piece of gold. Buying gold this way means that you get gold you can literally hold it in your hand. For a lot of investors worried about the collapse of the global financial system, this is the only kind of gold investment that matters.
For my fellow Canadians wondering how to buy physical gold for investment, it’s actually quite easy. You can buy gold from a bank. Or you can buy gold coins from the Canadian Mint if you’re working with a smaller budget. Canadian gold coins make a great gift (not just investment!) and are easily accessible from reputable Canadian gold dealers.
Knowing how to buy physical gold for investment in America is a little bit trickier, as most of the buying and selling of gold seems to happen through independent firms. Although I have not bought gold from any of these gold dealing firms, one of the most respected places to buy gold seems to be usagold.com. Their website has a ton of choices for buying gold for investment. And they seem to have good reviews from the Better Business Bureau. If anyone else can share how to buy American gold in the comments below that would be really helpful.
But if you’re worried you don’t have space in your house to buy and store bars of gold, or if you want to buy gold to diversity your portfolio there may be easier ways to buy gold than learning how to buy physical gold bullion and ingot.
How to Buy Gold ETFs for Investment:
A very easy and quick way to buy gold for investment is if you buy gold ETFs. These exchange traded funds allow you to quickly scale in and out of Gold as your asset allocation models dictate. The speed and ease of buying and selling Gold ETFs make them a viable option for anyone looking to buy gold in their investment portfolio.
The most popular gold ETF you can buy for investment is the SPDR Gold Trust ETF (NYSEARCA:GLD). On average there are over a million shares of GLD bought and sold each day so you can have no problem rapidly moving in and out, based on your need to buy gold for investment or as a hedge.
Another popular gold ETF you can buy for investment is the iShares Gold Trust ETF (NYSEARCA:IAU). The nice thing about buying the iShares Gold ETF is that it is also very liquid and (as of writing) you only need about $12 to buy gold through IAU, whereas GLD is about $100 more expensive per share. If you only have a limited amount of capital to buy gold for investment, IAU might be one of your best options.
Finally, if you want to buy gold miners you can buy individual stocks or you can buy gold miner ETFs like GDX, GDXJ and the 3x leveraged ETF (read: scary!) NUGT. And actually, let’s talk about buying gold miners in a little more details…
How to Buy Gold Miners for Investment:
If you’re still curious about how to buy gold for investment, then maybe you should think about buying gold miner stock directly. Since gold miners are the companies literally digging the gold out of the ground, they are a great way to get levered exposure to the price of gold. While buying the gold miner ETFs above is a great way to get broad exposure to gold mining, there are a lot of publicly traded gold miners you can buy directly for investment.
If you have a few minutes, I suggest you watch this short video on how to buy the best gold miner stocks. When you buy gold miners, you should always be particularly careful of the fundamentals of the company and any geo-political risks the company might be facing (as they often explore for gold all over the world). I like to buy gold miners for investment when they have strong fundamentals and where management is focused on cash-flow and disciplined operations.
And it’s worth noting: While this blog post talked exclusively about how to buy gold for investment, you can buy silver for investment using all the same techniques. There are silver coins, silver ETFs and silver miners that you can buy for investment the same way as you would buy gold. So now that you’ve read all about gold investing, what are your favourite ways to buy gold for investment?
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