How to Invest in Gold or Platinum
Investing in precious metals such as gold and platinum can be an excellent way to hedge against inflation and economic downturns. When the economy takes a hit gold often rallies, and that can lead to profits even as stock market investors are losing large sums of money. There are a number of ways to invest in the future of gold and other precious metals, and it is important to research your choices to find the one that works for you.
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Consider what is involved in gold investing. Many new gold investors assume that buying gold means buying a gold bar or a stack of gold coins, but that can be an expensive and impractical way to invest. If you buy gold coins you will need to pay for storage and insurance, and keeping those coins at home could be an invitation to theft.
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Look for alternatives to investing directly in gold coins and physical gold. One of the most practical ways to invest in gold and make money when the price goes up is to purchase the ETF (exchange traded fund) that trades under the ticker symbol GLD. This exchange traded fund directly tracks the price of gold, so when the gold price goes up so does the price of the fund. If you want to add platinum to your investment portfolio you can do so by purchasing the exchange traded fund that trades under ticker symbol PTM.
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Look for mutual funds that invest in gold mining companies. When the price of gold goes up companies involved in the gold mining business tend to do well, so gold mining stocks can be a good choice if you are bullish on gold.
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