What are the 5 ways to invest in Gold?

If you want gold investments you then need to decide how to invest in gold. There are a many ways to buy and sell gold, i.e. through physical investments in buying shares in a gold producer, gold bullions or gold coins, or exchange traded funds.

Gold Bullion: Investing in gold bullion has been the traditional method of investing in gold for hundreds (if not thousands) of years.  You can purchase gold bullion directly from a gold trading company. Gold bullion has the advantage of having a perfect correlation to the market price of gold, and if you hold the bullion yourself there is no third party risk. There are many bullions buyer Sydney who are happy today.

Gold Coins: There are two types of gold coins to consider – regular bullion coins and collector or numismatic coins.   Many people who want to invest in physical gold will do so by purchasing bullion coins. The alternative to a bullion coin is a collector coin (or often referred to as a numismatic coin).  These coins trade at a substantial premium to the underlying value of the gold in the coin.

Exchange Traded Funds / Exchange Traded Commodities: ETFs are most commonly known as a form of index fund traded on the stock exchange, designed to track the performance of the relevant index to which it is benchmarked.

Shares in Gold Producers: Shares in gold producers are another option to get exposure to gold price that may provide an income stream.  However investing in gold producers will not always correlate with the gold price and introduces new investment and equity risks.

Jewellery: Many people think that their expensive gold jewellery is a form of investment in gold.  Unfortunately for most people the value of the underlying gold in your jewellery will be a fraction of the cost to buy the jewellery in the first place.  The other disadvantage of investing in jewellery is the ability to monetise or sell the jewellery when you need money. The advantage is that the customers can also get loan for jewellery Sydney.

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