Best Way to Invest in Gold

Gold is often thought of as an excellent investment that can hedge your portfolio against inflation, and it is a safe long-term investment for investors.

There are various ways that you can make an investment and add gold to your portfolio, but they are not all as good as one another.

Below you will find some of the easiest ways that everyone can invest in gold to decide which one is best for you that you are comfortable with and diversify your investment portfolio.

1. Investing In Gold Bullion

Gold bullion is not something you can usually get at your local stores, and you will need to contact a reputable bullion dealer to make a purchase. They will charge a commission and storage fee if they are going to look after your investment, and there will also be a delivery fee if you will have your gold bullion purchase delivered to you. You will need to consider where you will store your gold carefully to ensure it is safe, and the cost of this can eat away at the profits you make as your investment increases in value.

2. Investing In Gold Coins

Investing in Brisbane gold coins, or any other type of gold coin, is another popular investment vehicle for gold, and it is often much simpler to store safely than bullion. You can purchase many different types of gold coins, with many countries globally producing these high-value coins. It’s ideal that you locate the most reputable dealers near you first through a Google search. If you make your purchase from reputable dealers, you can help ensure that you make an excellent purchase. Ensure you factor in the commission and delivery charges, and you may have found the perfect way to invest in gold for yourself.

3. Gold Stocks & ETFs

You can also consider investing in gold stocks and ETFs (Exchange Traded Funds), and many people opt for this when they do not have anywhere secure to store a physical gold investment. The one thing to note with this is the value of your gold stocks does not go hand in hand with the spot price of gold, as it depends on how the mining company performs as to whether dividends are paid, or the value goes up. However, as you do not have to pay for storage and it is possible to sell your gold stocks and ETFs quickly, it is an excellent way for people to begin investing in gold.

4. Gold Jewellery

The most common way that people invest in gold is by purchasing gold jewellery, and many people wear their investments regularly. However, it is also one of the least cost-effective ways to do so, as the jewellery company will have a significant mark-up on the jewellery. As soon as you purchase an item of jewellery, if you want to sell it without wearing it, the value will go down considerably, so it is not the best vehicle when investing in gold.

However, you can purchase gold jewellery because you like it, and you do not have to consider it as an investment as long as you can afford it.

5. Gold Bonds

If you are not interested in investing the physical Gold, bonds are also the best way to invest in Gold. These are supervised by the reserved bank of India and sovereign Gold bonds were recognized by the Indian government in 2015 as an alternative to Physical gold.  You can buy the Gold bond with 8 years term and 5 years lock-in period. You can exchange them from cash and the best part is that you are not charged with any managing fees, etc.

6. Digital Gold

Digital Gold is also one of the best ways to invest in Gold as the amount is no bar. You can invest with the lowest amount as well. There are many platforms available online for dealing in digital gold and these platforms usually have an association like Augmont. The purchase can be done according to the live market price of the Gold and redeem whenever needed. You can either get your investment value as physical gold or cash.

7. Gold Saving Schemes

Many jewellers run Gold saving schemes where you are required to deposit a fixed amount every month to the jeweller of your choice. After the maturity period of the scheme, you can buy Gold and some jewellers also add the bonus to the amount deposited by you at the end.

Best Ways to Invest in Gold at a Glance

While choosing the best way to invest in gold, you need to very vigilant as this investment can involve risk too.

Here, is a quick summary of all the best ways to invest in Gold:

Ways Mode Expenses
Digital Gold Online Expense varies according to different platforms. Making changes in the case of physical gold will be applicable along with delivery charges.
Gold Jewellery Offline (Occasionally online too) Making charges (6%-20%)
Gold Coins and Bars Offline (Occasionally online too) Making Charges (up to Rs.1000)
Sovereign Gold bonds Offline & Online No Charges
Gold ETFs Offline & Online The charges are in the ratio of 0.5 to 1%.
Gold Fund of Funds Offline & Online Charges up to 1%.
Gold Saving Scheme Offline & Online Making Charges

Conclusion

If you are searching for risk-free ways of investing in Gold, Sovereign Gold bonds are the best option for you as they provide interest at the rate of 2.5%. In Digital Gold, the Price can go higher or down according to the live market.

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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