Unconventional ways to invest in gold

words Aelxa Wang

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For many people, especially those who don’t like to take huge risks, gold has been their most preferable type of investment. Everyone knows that gold keeps its value over time and it’s a perfect way for investors to store wealth in tough economic times.

However, some individuals don’t prefer the usual ways of gold investment, such as possessing and keeping gold at home, so they search for other types of investments.

If you’re interested in investing in gold, but you don’t want to keep it at home because of the theft risk, here are some unconventional ways to invest in gold.

Unusual Ways to Invest in Gold 

Gold IRA 

A gold Individual Retirement Account (IRA) is an excellent way to save for retirement. Gold IRA allows you to invest your savings in the form of coins, bullions, or bars instead of stocks, bonds, or other securities. You can also invest in other precious metals other than gold. However, not all financial advisors will recommend a gold IRA because they don’t get commissions out of it. So it’s preferable to find a reliable source to find the best IRA companies you can deal with. The perk of owning a gold individual retirement account is that its disbursements and taxes are the same as any other IRA. So basically, you will not be charged any extra fees for owning a gold IRA, and you’ll be protecting yourself against inflation or other financial losses.

Online Gold Apps

Nowadays, there are a lot of payment apps that allow you to purchase gold over your phone in any quantity you like, and some of these apps offer to deliver the gold to your house whenever you want it. So you can purchase the gold online and have it a year or 10 years later. These online gold apps also allow you to sell the gold online if you don’t want to physically keep it with you. It’s a great way to invest in gold without the risk of theft. However, you will need to do some research in order to find the best and most secure app in the market to avoid fraud. You should also search for the apps that provide the purest gold. 

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Gold ETFs

For those who are interested in earning on the investment of gold, then Exchange Traded Funds (ETFs) are the best option. ETFs allow you to virtually own gold similar to the online gold apps, but ETFs are more like mutual funds. The money the investor pays is combined and added to a certain category of assets, which in that case is gold. In Gold ETFs, the value of the gold bullion, coin, or bar you own has 99.5% purity. One unit in Gold ETF equals 1 gram of gold. Investing in a gold ETF is not like purchasing bars or gold jewelry, you will not have to worry about purity. All you need to do is a trading account with a broker and a reliable company. Getting a gold ETF is less risky than any other type of investment because the price fluctuations are not major. When the gold price decreases, the ETF’s value decreases as well. 

Gold Mining Stocks

If you’re one of those who prefer investing in stocks, then purchasing shares in gold mining companies will be the optimal choice for you. Investing in gold mining stocks requires enough understanding of this market as it differs from regular stocks. You should consider the production cost of gold versus the market price of gold. For example, if the price is $900 and the production cost is $400 then the profit margin is $500. When the price increases by 10% the gold mine’s profit will increase by an average of 20%, and when the price decreases the profit decreases as well by 20%. However, some gold mining companies hold the price of gold for 18 months, so it could be safer for investors to invest in these companies.

There are many unusual ways to invest in gold, some have risks and others don’t, but there’s no doubt that the risk of gold investment in any of these ways is much lower than any other method. In order to choose the ideal way to invest in gold, you should consider the reasons why you want it. Is it a retirement plan? Or you want to protect yourself against inflation? You should also decide whether you’ll be okay with a little risk or not. Determining the reason why you’re looking for ways to invest in gold will help you identify the best investment method for you.

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