In August 2020, the price of gold reached $2,061.50 per ounce, a new all-time record. Gold has been a trusted investment for millennia. If you’re thinking of making the jump and purchasing gold, now is the perfect time.
But, before you do so, you need to understand several things. Knowing the different types of gold can help you make an informed decision, so your investment is the best option for you. Let’s take a look at the main kinds of gold you can buy.
There are a number of types of physical gold. The most common kinds are gold bars, gold coins, and gold jewelry.
Gold bars are sometimes known as ingots or gold bullion. They come in a brick shape that makes them very convenient to store. Gold bars are available in a few different standard weights, with one gram being the smallest.
Gold coins are another form of gold investment. Governments mint gold coins, which include the American Gold Eagle or the British Sovereign. In addition, gold coins may have legal tender status but aren’t part of common circulation.
Gold jewelry can be used as an investment or an accessory. Most of the time, it is a better accessory than investment due to the labor charges. Items that have higher purities are worth more but may be more difficult to find. However, they are more durable if worn.
You can also have gold investments without ever owning physical gold. These kinds of gold are great as long-term investments.
Gold Exchange Trading Funds are groups of stocks you can purchase that contain gold assets. They can be a great addition to your portfolio since they are relatively nonvolatile and the value of gold commonly rises when the dollar is weak.
You can also purchase contracts based on buying or selling gold for a price on a specific date. These gold futures or options come with additional risk and may be a better option for more experienced investors.
Gold commodity pools can be traded on futures derivatives markets, just like gold futures. However, in these pools, investors fund deals as a group that they cannot afford on their own.
How to Buy Gold
If you are interested in buying physical gold, buying gold online is your best option. Doing so will allow you to order exactly what you want with a variety of options.
Gold bars are produced by private companies and government mints. Make sure to look for a recognized hallmark and stamping that has information about the bar when purchasing. Gold’s current market value determines the value of gold bars.
Gold coins can be purchased through government mints or private companies. Many times, they have more value when melted down, but collectible coins may have a high market value.
Since paper gold comes in the form of intangible assets, you’ll need to go through a broker to purchase it. Be sure to find a reputable investment company that best meets your needs.
Choose the Best Types of Gold for You
There are a few different types of gold including physical gold and paper gold. Even within each of these categories, there are even more options. By understanding all of your options, you’ll be able to make a more informed decision when buying gold.
If you found this article helpful, be sure to read our other business and finance articles too.