Gold has maintained its high value for centuries, unlike regular paper currency. It is a perfect hedge against inflation and protects you from deflation. With gold, you can preserve wealth across generations. Gold is unique, and as such, it has been a topic of interest for investors. It is a highly liquid asset that serves as a luxury and valued investment.
The risk involved in investing in gold is also minimal, and this asset can help you grow your wealth. It is a wise decision that you’re thinking about acquiring gold, and you will not regret it, especially if you go about it the right way.
According, to recent studies, Australia is one of the world’s largest producers of gold, and this article centers on the various ways you can invest in gold as an Aussie. Read on to discover more exciting information.
- Buy physical gold
Buying physical gold is the easiest way to acquire gold. You can go to any reliable jewelry store and pick any gold jewelry that catches your attention or that you can afford. Although you’d have to keep it safe at home, it’s beneficial in that you can easily resell the piece of jewelry whenever you want to.
If you don’t know where to buy this, you can ask your friends and family for recommendations on what jewelry stores are reliable. It is also easy to monitor and track the performance of gold in the investment market. The best thing about buying physical gold is protecting you from counterparty risks associated with the other methods of acquiring gold.
- Invest in Gold Mining Stocks
Gold mining stocks are publicly traded investments centered on gold and run by mining companies. Choosing a mining company requires a certain level of research. As the value and price of gold increase, so do gold stocks. There are different companies, and these prices vary from company to company. To research these companies, you must analyze and fully dissect their financial statements, including balance sheets and income statements.
- Gold Exchange Traded Funds(ETFs)
ETFs are beneficial because investing in these mean that you don’t have to do any form of analysis on your own. There’s someone who does the research and picks security holdings. However, the value of gold ETFs, unlike Gold mining stocks, is that its value doesn’t increase with the price of gold, and there’s a risk of making a profit or loss based on its value in the stock market.
- Gold futures
Purchasing gold futures is another way to invest in gold. For futures, it works this way- when gold is doing favorably well in the market and increasing in value, the futures contracts are set at a higher price than the current market value. This means they sell gold futures for more than their current price or value. You have to select the right contract month and buy at a reasonable price, so you don’t make losses.
Of all the above-mentioned methods of acquiring or investing in gold, acquiring physical gold is the easiest. It doesn’t require many procedures, and you’d avoid counter-party risks. However, if you are not comfortable with the idea of keeping gold in your homes due to safety concerns, then you should opt for the other methods. Whichever method you choose, the tips in this article will help you.