How to invest?
While gold is one of the world’s earliest forms of currency, there are now multiple ways to hold the precious metal for investment purposes.
“Investors should first decide why they want to own gold,” said BlackRock’s Taw. “Is it for return potential or portfolio diversification?” Then you should familiarize yourself with the various options and the risks involved, he said.
Here are few ways you can get started.
Buy physical — Physical gold bars and coins is the most traditional way to own gold. “It is very liquid and easy to buy in one place and sell in another,” said Alexander. Physical gold assets can now be purchased at banks, among other places, but buyers should be aware of additional costs such as insurance and storage.
Buy ETFs/ETCs — Exchange-traded funds and exchange-traded commodities are vehicles that allow you to track the underlying price of gold without having to physically hold the asset. “If you just want to play the gold price, the ETF options have been popular,” said BofA’s Widmer.
Buy gold-related stocks — Companies directly linked to gold, such as gold miners or gold producers, are another way to hold gold, as they tend to mirror its performance. However, they are also susceptible to stock market swings. “In a bull rally they do very well, but they are susceptible to pull backs,” said Alexander.
Buy alternatives — Alternative vehicles such as gold-backed cryptocurrencies or foreign exchange trades offer another way to buy into gold, though these are typically for more experienced investors.
You can find the original article here: https://www.cnbc.com/2020/07/20/investing-how-to-invest-in-gold-is-now-a-good-time-to-buy-gold.html
