In times of uncertainty, there are few better things to have than gold.
The value of gold is universally recognized and investing in gold is a prudent move for rounding out a portfolio.
Keep reading to find out what the best gold investment and the best way to own gold for your long-term financial security.
Gold futures are an exchange-traded contract. That means you agree to purchase a set amount of gold at a fixed price at a future date.
This is a great way to invest directly at the spot price of gold without having to deal with physical metal. If you think the price of gold is going up, you buy gold futures. Doing so allows you to pay today’s prices for gold you take ownership of when the price is higher.
If, on the other hand, you think prices will drop, you can short gold futures and benefit from the falling prices.
Gold ETFs work in the same way as stock or bond index funds. You can purchase them through your regular broker and hold them as part of your long-term portfolio.
Gold has historically been one of the best ways to hedge against market instability and recessions. “Good as gold” is a common saying for a reason. Throughout history, gold holds its value exceptionally well.
It can be a less risky way to invest directly in gold than gold futures while still allows you to avoid dealing with physical gold.
Buy Stock in Gold Mining Companies
Another way to invest in the gold market is to purchase individual shares of stock in gold mining companies. Mining is a feast or famine industry. When gold prices are high, gold mining companies generally do very well.
There is an added element of risk when you invest in companies that rely on a commodity. Not only are you at the mercy of the commodity price, but you can also lose money if the company itself is mismanaged or makes a poor decision.
Best Gold Investment: Physical Gold
For those who are serious, the best way to own gold is still buying physical bullion. This is especially true for those in unstable regions where your local currency may experience significant fluctuations.
If something should happen to the world economy, you’ve still got gold bars or coins. These have traditionally held their value very well in times of unrest.
One of the best ways to buy gold is the South African Krugerrand. It’s one of the global standards for gold investment.
One Krugerrand contains a troy ounce of fine gold in an alloy with copper. This makes it much more durable than similar gold coins or gold bars.
Secure Your Financial Future
Owning gold is one of the best ways to protect yourself against a significant stock market downturn. The best gold investment is the one that you are comfortable working with and have the means to utilize appropriately.
Take steps today to ensure you hedge your portfolio against any eventuality.