How to Buy Gold With a Broker

There are several ways to invest in gold. While you can buy gold directly in the form of coins, jewelry and other similar items, the best way to buy large amounts of gold is to use a commodities broker. With a commodities broker, you can buy gold futures contracts. These contracts allow you to invest in gold without having to worry about storing physical gold.

Things You'll Need

• Investment capital
• Broker

Instructions

1. Open an account with a commodities broker. The process for doing this may vary by broker, but generally all you have to do is fill out some light paperwork. The brokerage will review the paperwork, and if you meet the necessary requirements, they will open your new account. Once your account is open, simply fund the account. Most brokerages have account minimums, so be sure to check on this before funding your account.

2. Decide how much money you want to invest in gold. You can invest all your money if you'd like; however if you buy gold and the price drops too far you will either need to exit the market or transfer more money to your account to meet margin requirements. For this reason, some people choose to leave some liquid cash in their account.

3. Buy an appropriate number of gold futures contracts. Take your investment capital and divide it by the price of a gold futures contract. The price will obviously fluctuate as the price of gold moves up and down. The result you get will be the number of futures contracts you can buy. Again, there may be certain margin requirements so make sure you have enough money to meet these requirements before buying any contracts.

References

• Trading Gold and Silver Futures Contracts

Resources

• Read this Article in Spanish