A beginner’s guide to gold investing

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ld is being looked at as insurance by investors because of one simple reason: since its value doesn’t move in line with other securities, it positions itself as one of the best assets to diversify a portfolio with. For many traditional gold investors, the precious yellow metal isn’t like any other investments. Rather, it is something that is only traded when the economy is bad such as hyperinflation. In short, gold is something that is turned to by many investors when their paper securities fail.

Here are a few ways that you can get exposure to the precious yellow metal.

Gold certificates

The Perth Mint Certificate Program is one of the most popular ways to have gold investments. It is currently the only government-backed precious metal certificate program that allows people to own investment-grade gold.

Gold certificates don’t make an investor owner of a set amount of gold. They are like vouchers that provide investors the right to purchase physical gold from an unallocated amount stored by the Perth Mint. What’s great about gold certificates is that they have no shipping, insurance, or storage fees, making them one of the cheapest ways to get exposure to the precious yellow metal.

Gold coins

Coins are great since they are much cheaper than bars and are sold at different denominations. You can buy coins with ¼ oz, ½ oz, or 1 oz of gold. The South African Krugerrands are quickly becoming popular since they have the lowest premiums among all the gold coins minted in other countries. However, the U.S. Gold Eagles and Canadian Gold Maple Leaves have the biggest market.

Buying investment-grade gold for investment purposes is stamp-duty free and tax free in Europe. In other countries, however, Value Added Tax and other fees apply. The costs associated in investing in gold coins (storage fees, shipping costs, premiums, tax, etc.) are what makes it one of the most expensive ways to get exposure in gold. However, as precious metal experts say, there’s no better way to own gold that the ones you can hold and liquidate immediately when you need to.

Physical gold and silver market online

The physical gold and silver market for online traders first saw light in 2005 and became a hit in the UK for several reasons. First, it completely eliminates the purpose of the middle man since buyers and sellers transact directly. Second, getting exposure to precious metals through it is much cheaper than gold certificates and allows investors to own an allocated amount of gold. Lastly, it allows investors to have gold investments outside their home country in an instant.

If you’re worried about buying precious metals in online gold and silver markets, look for providers that are members of the London Bullion Market Association (LBMA) – an organization that represents the London gold and silver market on a global scale. Providers that are members of the LBMA are safe to transact with and only sell gold that have good delivery status.