The Best Type of Gold to Invest in
The best type of gold to invest in depends on your particular needs. Small gold investors prefer to hold their gold in the physical form, but there are also gold stocks, mutual funds, exchange traded funds and gold futures.
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Physical Gold
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Gold coins, gold bullion rounds and gold bars are all good ways to own small amounts of gold. They are easy to buy and sell, and their value is always linked to the price of gold.
Gold Stocks
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Gold stocks invest in companies in the gold industry. They can be in mining, refining or sales. Gold stocks tend to be very risky but can produce impressive returns. They are only for the boldest investors.
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Gold Mutual Funds
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Gold mutual funds provide a more diversified way to own some gold stocks. They invest in a range of gold investments including established companies, speculative stocks and bullion.
Gold ETFs
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Exchange traded funds are mutual funds that trade on an exchange like a stock. The two gold ETFs traded in the U.S. invest exclusively in bullion. They are a convenient way to invest in gold without ever taking possession of any.
Gold Futures
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Investing in gold futures is the riskiest way to invest in gold. You are essentially guessing whether gold prices will rise or fall. If you guess right, you can make a lot of money quickly. Guess wrong and the opposite happens.
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