Investing in gold is smart, and when you really do it right, you make money both short and long-term. Let’s discuss the various benefits vs disadvantages of all the ways which you can invest in gold.
Owning Shares in a Gold Mining Company or Gold ETF
Essentially you hold paper notes that represent the price of gold in an exchange traded fund. So you get a piece of the action with gold but without the hassle of ownership and storage, at least in theory. The returns are pretty consistent but nothing incredibly great, and there’s no safety against a stock market crash.
After all, it’s just paper that represents a theoretical stake in gold. See how long that lasts in the event of a financial market crash.
Another way is to buy stock in mining companies. This can be potentially profitable, but also very risky. There’s too many factors outside of everyone’s control, and all the variables tend to cause price volatility. I see these types of stocks as “get in, get out” stocks in a sense that you buy them over the course of 3 to 6 months and then get out with your profit, but that’s just my strategy with these types of stocks.
Honestly, I’d stay away from both these kinds of stocks. They’re not real ownership of gold, they’re highly speculative and not that valuable in my opinion.
Gold You Can Hold
Another way to invest in gold is to randomly buy gold coins. This is another shaky way of going about gold purchasing. You may never know the quality if you’re not buying from a registered dealer, and it can get downright frustrating.
If you want gold you can hold, make sure to buy only the gold that meets the standards for a Gold IRA, whether or not you intend to get a Gold IRA or not. Gold IRAs demand only the highest purity gold and there’s a short list of coins that meet the requirements. Having physical gold is both a hedge against inflation, financial collapse and societal hardships.
Maybe I’m an optimist but I don’t see another financial crash. I see a long slow road to poverty for the United States, but I see tremendous opportunity for the investor that gets it and makes good decisions now. These decisions shouldn’t be made out of the fear of headlines or Federal Reserve statements, they should be made wisely with a 20 year shelf life in mind.
The Best and Most Practical Way to Hold Gold
The last, safest and best way to profit from gold is to simply open a Gold IRA. You’ll have a tax free investment that builds value in the event that US federal debt continues to go up and China become the powerhouse it was predicted to be.
You can roll over your pre existing IRAs once each or fund it with your 401(k), and whatever Gold IRA company you go with can take care of all the details for an easy, seamless and worry-free process. I think the best part is you get to take a significant position in gold that protects your overall savings and wealth while staying off the radar and avoiding all the market drama and instability.
Gold is a great value, so invest in it wisely! We chose Regal Assets for a reason.