Text 1 Jul 5 Ways to Invest In Gold

When you invest in gold by ownership of the metal, as mutual funds, or even gold mining stock this provides the most obvious counter for the dollar. Hence as the dollar drops, your gold will inevitably rise.

Five ways of investing in gold depending on your experience may be any of the following:

    • Through direct ownership by understanding the fact that many civilizations understand the value and permanence of this value. The understanding here is that gold represents the only real money and so its value will change based on the demand and supply forces.

    • Through the gold exchange-traded funds that have recently emerged as a better option of investing in gold. With this approach your mutual fund can trade on the stock market just like other stock. The exchange traded funds portfolio remains fixed and is not subject to any variations

    • By using the gold mutual funds which are suited for people who don’t want to invest in physical gold, although they have the desire and exposure to the precious metal. Therefore gold mutual funds are a more viable alternative in this case. Such funds have portfolios of gold stocks-that is as well as the stocks of companies. When you are one of the investors, selecting any such a company demonstrates moderate or conservative stance.

  • Through the junior gold stocks that includes level of more speculative stock. Such junior stocks are least likely to possess productive mines, and may only involve exploration plays featuring higher potential profits that also have greater risk of loss. These stocks’ capitalization will be smaller than the senior gold stocks. Such a range of investments is suitable for investors with broader risk tolerance accepting the likelihood of gold-based losses.

  • Through gold options and futures that includes more sophisticated and experienced investor, options allowing you to do speculations in gold pricing. Generally in the options market, your speculations can be in either direction. When you buy a call, your hope is that the pricing will improve. Such a call will fix the purchase price hence the higher the price goes; the greater is the allowance between your fixed option and current market prices. These are perhaps the best ways of investing in gold. However the success of what you use may also depend on other factors.

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