If you can’t get your hands directly on any gold, you can always look to gold mining stocks. You don’t have the security of physical possession of the metal if the companies you buy are unsuccessful. Gold prices can be volatile in the short term, but the is buying gold a good investment metal has maintained its value over the long term.

How Much Gold Should I Hold?

That’s almost a 5% markup over a comparable amount of gold bullion. With gold futures, you commit to buy or sell gold in the future at a specified price. Under a gold options contract, you have an agreement with the option to buy or sell gold if it reaches a certain price by a predetermined date.

1. The differences lie in the volume and how long they may hold onto the gold.
2. The disadvantage is the time spent searching for valuable pieces.
3. Thus, investors often buy gold as a safe haven whenever news events hint at global economic uncertainty.
4. Whether it is the tensions in Ukraine, Eastern Europe, the Middle East, Africa, or elsewhere, political and economic uncertainty is part of our shared reality in the mid-2020s.
5. Yet it wasn’t until around 560 B.C.E. that gold started to be used as a currency.

Gold bars are popular because investment-grade bars must be at least 99.9% gold. While their stocks’ prices may not entirely match the trajectory of physical gold’s price, they will likely be correlated. This gives you exposure to gold as an investment without the risk or headache of handling physical gold. Gold can be an important part of a diversified investment portfolio because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline.

Gold Futures and Options

Some brokers, like Fidelity and Interactive Brokers, let you buy gold with relative safety and ease. Both of these brokers can either hold the gold for you or they can send it to you — though a variety of fees may apply. He’s also written for Esquire magazine’s Dubious Achievements Awards. Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more. Gold prices climbed about 13% for the year-to-date at one point in the first few months of 2022, but they were also down as much as 10% YTD by November.

How to invest in gold: 5 ways to buy and sell it

Each type offers unique features and suits different investment strategies. You can start small, with gold coins or small bars, and gradually increase your investment. Investors turn to gold to safeguard their portfolios during economic uncertainties.

While gold is often seen as a defensive asset, it also has the potential for growth. Factors like global demand, supply constraints, and market sentiment can drive its price up. You may be able to find better deals on gold coins from local collectors or pawn shops, but it’s still typically safer to make purchases using a reputable, licensed dealer.

In contrast, owners of a business — such as a gold miner — can profit not only from the rising price of gold but also from the business increasing its earnings. Investors like gold for many reasons, and it has attributes that make the commodity a good counterpoint to traditional securities such as stocks and bonds. They perceive gold as a store of value, even though it’s an asset that doesn’t produce cash flow, while others also consider gold a hedge against inflation. But all offer a liquid, low-cost entry into the gold market that is more diversified and, therefore, lower-risk than buying equities outright.

That added a layer of expertise to his work that other writers cannot match. When the price of gold goes up, so will the resale value of your jewelry. Plus, you also have an item that you or your family members can wear. In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more. If you want a good night’s sleep, go with gold investing, not silver. Gold prices can be volatile, but they’re nothing compared to silver.

Gold stocks, ETFs and mutual funds are much easier to buy and sell than physical gold. You can make these trades immediately through your brokerage account. While these electronic investments don’t have the same visual appeal as physical gold, they can make your life easier as an investor.

In November 2024, Chief Executive Officer Jonathan Paul Rollinson sold 1.5 million shares, amounting to $21 million. Insider selling can sometimes signal concern, though it’s important to consider that executives often sell shares for personal financial reasons unrelated to company performance. While this sale doesn’t necessarily spell trouble, it’s worth monitoring. Following the advent of gold as a medium of exchange, its importance expanded, with relics of the metal from the Greek and Roman empires prominently displayed in museums worldwide.