Beginner's Guide to Investing in Gold

Kulbhushaan Raghuvanshi Jan 12, 2019
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If the shiny yellow metal draws your attention, then this guide to investing in gold can tell you a lot about investing in gold. Learn how can gold be an option for a safe, long term investment.
There's no argument that gold is one of the most sought after metals in the world, due to its market value. Gold has been one of the oldest forms of currency and till today it holds its worth of being one of the most profitable assets in the world. There was a time when many empires and nations have fought for this shiny piece of metal.
Well, things have changed since then and the good news is you don't have to fight a war to get gold; you just have to purchase it, either in the form of jewelry or for the purpose of investment.
This guide to investing in gold is specially for people who are new to the market of money and investments and want to know the basics of gold investment. The best way to begin gold investments is to have a close look at your portfolio. It's not advised to put all your money in gold investments but you should consider other investment options as well.
A diversified investment portfolio is always beneficial for any new investor. Think about your main aim for investing in gold; do you want physical gold, do you want to put your money in gold investment companies or you want to be a proud collector of gold certificates, consider all the options before gold purchase.

Gold Investment for Beginners

We all have seen the drastic effects of economic recession on our lives; markets crashing, people losing their jobs, homes and what not. People who had some safe investments at their hands during those trying times are the ones who survived.
Investing in gold is comparatively a safer investment than others. As an investor, your portfolio should show at least 25% of investments in precious metals like gold and silver.

Physical Gold

The first option in the beginner's guide is physical gold. This form of investment is one of the most popular and probably the safest form for someone who's still taking baby steps in the investment world. You can purchase bars and gold coins from gold traders, gold shops, private dealers, etc.

Gold Mutual Funds

Another great option to invest in gold is putting your money in gold mutual funds. By investing in gold mutual funds you become owners of various gold points but not owners of physical gold. Mutual funds consist of various investments such as gold mining securities, ETF exchange trade funds and gold stocks.

Gold Jewelry

Here's a good reason to buy your partner gold jewelry; it is worth a lot of money if kept in excellent conditions. If the jewelry you bought has historic relevance, a great design and is kept in a good condition, its market rate can be huge.

Gold Mining Stocks

Buying gold mining stocks is another way of investing in gold without actually buying real gold. The increase in the value of gold as a metal clearly indicates that it is time to invest in gold mining stocks. Be careful while going for the gold mining stocks as it directly depends on the prices of gold in the market. This investment is pretty volatile.
Now the question arises, should one invest in gold? Almost the entire world is after it and there's no doubt that gold is profitable, if you're a dummy you can start by learning little by little and then go in for the big game.