Investing in gold is a great way to put your money in a safe place and plan for your future. However, getting a good gold price in UK markets can seem tricky for first time buyers. There are many different ways you can invest in gold, from actual gold bullion to gold-backed funds and more. Fortunately, with a little background info, it is possible to find a good way to invest your money in gold (read this guide).
Gold Coin and Bullion
When most people think of gold, they imagine gold coin and bars, also known as bullion. This is the most traditional way of buying gold. Gold coins and bullion are produced by the government available for purchase from many currency sellers. They are also legal tender. Make sure you shop around for the best deal as the gold price in markets can fluctuate, and sellers don’t always have the same markup.
Exchange Traded Funds
Often referred to simply as ETFs, exchange traded funds are stocks that are backed by gold bullion. They are slightly more high risk than purchasing bullion directly, however they also have the potential to pay off better.
Gold I.R.A. Rollover/SIPP Plan
Governments around the world are now allowing investors to leverage their retirement accounts to buy gold and silver. In the US, it is referred to as a gold I.R.A. Rollover (read this guide) as I.R.A. stands for Individual Retirement Account. In the UK, it is called a gold SIPP, where SIPP means Self Investment Pension Plan. Either way, the have certain tax benefits all while allowing the investor to hold the funds themselves.
Betting your money on gold equities can be a very risky way to invest in gold. However, if you seek the guidance of a financial adviser who is well versed in the trade, it also has the highest chance for a high payout. Not for the feint of heart.
One of the major downsides of investing in gold coin or bullion, is the high risk associated with storing and transporting it. Because they are actual, physical gold, they are a prime target for theft. In addition, if you are purchasing large amounts of gold, they can pose a storage problem, as need to be stored in a safe and secure location. These Gold Certificates (read this guide) solve many of these problems. Gold certificates are issued by banks and can either use gold that is allocated or pooled. Allocated gold means that there is a guarantee on the gold that backs the certificate. Pooled gold poses a slightly higher risk as there is no guarantee of that you will be able to get your gold back if there happens to be a run on the bank.
A different way of investing in gold is buying shares in a mining company directly. As gold prices rise, so do the value of the mining companies responsible for obtaining the gold. However, like investing in any other company, there are a few risks. Should the business go under or suffer a setback due to a mining accident or natural disaster, stocks values could plunge as well.
With the economy in such dire straights, it is no wonder that more and more people are looking to invest in gold. Gold has long been considered one of the safest places for your money, and shows no sign of slowing its steady growth. If you take care to find the best gold price in UK markets, you will soon see your investments growing as well.