How to Invest in Gold Ratings
Smart investors will often spread their money among many different asset classes, including stocks, bonds, fixed-income investments and precious metals such as gold and silver. Gold and other commodities often go up while the stock market is going down and inflation is on the rise, so placing a portion of your investments in the metal can be an excellent hedge against both bear markets and inflation.
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Check the current price of gold by visiting a website such as Yahoo! Finance or Money.CNN.com. You can also track the price of gold on a daily basis through financial newspapers such as the Wall Street Journal.
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Decide if you wish to invest in gold. You can purchase gold coins or gold bars, but if you will need to think about how to store and insure the metal. You may also face a significant markup if you plan to purchase collectible gold coins. An alternative to direct investment in gold is the purchase of an exchange-traded fund that tracks the price of gold, or a mutual fund that invests in gold mining stocks.
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Open an account at a mutual fund or brokerage firm and research the gold investment options they have to offer. If you have a brokerage account you can purchase a gold ETF (exchange-traded fund) such as the one that trades under ticker symbol GLD. This fund can be purchased in real time throughout the trading day, allowing you to choose the price at which you want to buy.
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Consider mutual funds that participate indirectly in the price of gold. There are a number of mutual funds that invest in gold mining stocks, and those funds can be an interesting alternative to purchasing gold directly. Since gold mining stocks tend to do well when gold prices are on the rise, these mutual funds can be a unique way to participate in a rising gold market.
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