How to Buy Gold Through Stocks

Gold has been all over the news with prices spiking to $1,000 an ounce. Gold is in a bull market and is a good defensive investment during a recession. This guide will show you the process of investing in gold through gold stocks.

Difficulty: Moderately Easy

Instructions

1. Figure out which investment product is right for you. There are four basic investment vehicle options to invest in gold.
   1) Gold spot rate futures
   2) Gold mining stocks
   3) Gold mutual funds
   4) Gold exchange traded funds

2. For the average investor, gold futures and gold mining stocks are not a good option. Trading futures requires a lot more capital then the other three options. Trading gold mining stocks would also involve doing a lot of research to choose an individual stock, and even then they are an indirect investment in gold.

3. The next decision is between a direct investment in gold or a more diversified investment in gold. If you want a direct investment in gold, then your product of choice would be the gold exchange traded fund. The symbol is GLD. GLD is a tracking stock and will directly track the movement in gold prices. If you want a more diversified investment in gold, invest in a gold mutual fund. Fidelity has a gold fund that invests in gold bullion, gold mining stocks and other gold-related investments.