Gold as Safer Investment During Economic Uncertainty 5.00 / 5 (100.00%) 5 votes

Gold has always been a precious metal worth investing in. This is probably due to the fact that unlike other investments, while the price of gold fluctuates as well, it is considered a relatively risk-free investment as the price of gold has been steadily increasing over the years, even in times of crisis. While the price of gold has reached an all new high, supply and demand still plays an important role in determining its price. There are several investment vehicles in which you can purchase gold from, a few of which are highlighted in this article.

Gold bars or bullion are most often seen in the movies. However, they are also the most traditional way in which a person can invest in gold. Depending on the country you are in, there are various available sizes for gold bars. You can either choose to keep gold bars in your own safe or place it in a bank vault which is registered under your name. If you are weighing options between investing in gold bars or gold bullion, do keep in mind that bars have lower premiums than bullion.

Another popular way of investing in gold is by buying gold coins. Prices for gold coins vary according to their weight. Additionally, there will be a premium placed on the gold spot price.

If you do not want the hassle of keeping gold bars or gold coins about you, then you should opt to invest in gold exchange traded funds which work exactly like shares except that you are of course trading in gold. If you decide to invest in a Gold Exchange Traded Fund (GETF), you will be charged a commission and an annual storage fee. Investing in a Gold ETF can be done via investment companies.

Another way to get around the inconvenience of actually having to keep physical gold is by purchasing ownership certificates. You can normally invest in gold certificates through gold pool programs or in certain banks. Investing in gold certificates are generally safer than keeping physical gold and as such, the security of this method makes it highly popular.

Some people might also think it is worthwhile to invest in mining companies. Do not be mistaken, however, because this method means that you aren’t actually investing in gold, per se, but rather in gold mining companies. You purchase the shares in a gold mining company and if its profits rise through the increase in gold price, you will then get your capital back. However, you should also bear in mind that there are other factors to be taken into consideration and the price of gold is not an indicator that the share price of your mining company will also increase in tandem.

Whichever investment vehicle you might decide on, you can be sure that investing in gold is always a smart choice. This is due to the fact that the price of gold – and other precious metals, most notably silver – will most likely keep stable even during times of war or economic uncertainty. As such, investing in gold is almost risk-free in that sense.