Investing in gold has long proven popular, especially among those savvy enough to protect themselves against inflation and against the dollar’s downward spiral. However, it is important to note that there are many different ways to invest in gold—and not all of them are created equal.
Consider this question, just as an example. Would you rather have actual coins of gold, or a piece of paper promising you gold? Since one of the benefits of gold is that it protects you against the risk of default—a risk that remains very real for those investing in, say, bonds—having actual, physical gold is always preferable. And this is just one factor among many that investors must consider as they look into the various options that exist for gold investments.
Direct Ownership
Indeed, as noted above, direct ownership of gold is the ultimate expression of value. Throughout history, owning gold bullion has proven the best way to make good on gold’s promise. The reason for this is that gold is the only real money in the world; the government cannot devalue it, and it does not ebb and flow in its value the way that paper currency does.
In this day and age, there are numerous ways to invest in direct gold ownership. In addition to buying straight-up gold bullion, investors can also seek gold proof coins, numismatic coins, and more. Such products are easily available through Wholesale Direct Metals.
Other Ways to Invest in Gold
Beyond direct ownership, there are several other ways for investors to get into gold:
- Gold exchange-traded funds represent one possible avenue. Currently, there are two ETFs in the United States that trade directly in gold bullion.
- There are also gold mutual funds. These are commonly held up as good alternatives for those who do not wish to directly invest in gold.
- Junior gold stocks, meanwhile, are potentially very risky investments, as they are unlikely to reflect ownership of actual gold-producing mines.
- It’s important to also know that all paper forms of gold lack any privacy and carry high tax burdens where investing in physical gold can help with both.
How, given all of these options, should you choose to invest in gold? Ultimately, that’s a decision you must make for yourself, but there is much to recommend direct gold ownership. Again, there is simply no better or more certain way to possess gold’s amazing purchasing power. Should the dollar tank and the economy collapse, you’re going to want to hold real pieces of precious metal—not simply a piece of paper or an IOU.