invest in gold

How to invest in gold for beginners

Finance

Gold is an asset that comes to one’s mind immediately when one thinks of an investment. But the real question is whether it is worth investing in gold. Different people have a different set of answers for this. However, it is It is worth mentioning that the attraction towards the yellow metal has never subsided. Investment in gold is quite a favorite option among the average investors and middle-class families. It could be highly profitable if the investment has been done at the right time.

You can see the various form of gold for sale. For example, the most popular form of gold is in jewelry with 18 carrot purity. Gold coins, bricks, and sacks are also the form of gold which can be used for investment. 

Let us discuss various ways to invest in gold for the beginners:

Buying gold in a physical form

Buying gold in a physical form is one of the most convenient methods to invest. This provides an altogether different experience of investing in gold in the physical form. Always choose a trustworthy brand for a secure investment, For example, Lear capital.

  • You can either buy the gold coins, bars or jewelry. 

If you or your dear ones are fond of wearing jewelry, then it is also a fair way to invest in gold. Buying jewelry would serve the purpose of investment as well as add value to your look. 

Otherwise, you can also choose the other option of buying gold coins and bars. Buying bars and coins would be more profitable from an investment point of view because you can save the cost of making changes that you must have to pay while investing in jewelry. Thus you will get more value in return. If you have planned to invest in gold, then the following points must be considered to prevent yourself from being cheated:

  • Ask about the making charges

You must ask about the making charges before the purchase of jewelry. Making charges may vary from 10 percent to 40 percent of the total charge. Note that whenever you will go for selling that jewelry, you could not get the making charges that you had paid while buying that jewelry.

  • Check the purity of gold.

Gold jewelry is generally made by either 18-carat purity or 22-carat purity of gold. You must ask for the purity check by sellers to prevent yourself from being fooled when you would think of selling it.

  • Ask to reduce the cost of stone from gold jewelry

Try to avoid buying jewelry with stones because jewelers mostly demand charges for stones the same as the cost of gold. While selling jewelers charge for the gold and stone may be told to be the same but while re-buying it they will deduct the weight of stone weight and cost.

  • Buy and sell the gold coins from the same jewelers

Always buy and sell the gold coins from the same jewelers. Many investors prefer to buy gold coins and bar over jewelry because here they are not going to pay any making charges and wastage. Buying from the same jeweler ensures the complete return of your investment. Selling the coins or bar to another jewelry from where you didn’t buy may put you in huge loss.

Non-Physical Gold

As gold is a precious item hence the buying and storing it safely is a big challenge for the investor. You can prevent yourself from such trouble by investing in a non-physical form of gold. ETF and mining stock are the best example of this.

  • Mining Stock

However, it is a very much indirect way of gold investment. You can buy the stocks of mining companies. The companies which are in the business of mining of precious metal like silver, platinum and other types of metal release their stocks in the stock market. Also, apart from buying mining stocks, interested investors may invest in mutual funds or ETF.

  • Gold Exchange Trade funds (ETFs)

The biggest advantage of EFT is that you need not worry about the stealing of gold. You would be free from storing real gold. In this particular method Buying and selling gold is quite simple. The two stock exchanges for gold investment are:

  1. American stock exchange
  2. New York stock exchange

Conclusion

In this article, you may have got a broader idea about how to invest in gold. Buying physical or Non- physical gold is completely your decision. Choose a trustworthy and reputed brand such as Lear capital for superior service experiences. Your approaches towards the investment in gold may differ and so maybe the profit. But, yes timing matters a lot, and hence invests at the time when the price of gold is getting dropped and sell when the price of gold is rising.

Leave a Reply

Your email address will not be published. Required fields are marked *