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The Best Ways to Invest In Gold without Holding It

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Have you made your mind to invest in the precious yellow metal? Well, investing in gold can be considered as a good move. Many investors are investing in gold for sale as gold holds a great store value. This acts as a hedge against inflation. However, sometimes it can be cumbrous to own huge quantities of physical gold. The problem is related to the security of the item. In order to keep the physical gold secured, lot of security efforts needs to be taken.

Luckily, there are many channels to own gold. However, while owning other forms of gold; one needs to be very careful about the pricing of gold and the gold market.

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Other Ways to Own Gold

Looking for the different ways to buy gold for sale? Well, before making any informed decision, you need to know the options available. Only then one would be able to make the right kind of investments.

  • Gold Receipts

Earliest form of credit banking is known to have taken place via goldsmiths. They would store the gold and in return of the deposited gold, a paper receipt is given. The receipt can be reclaimed later on. Sometimes, receipts of larger amount for bullion are given to customers.

Today, investing in physical gold can be reclaimed for physical gold. While the government mints don’t deal with gold privately; only private mints do. Hence, the Royal Canadian Mint can offer ETRs and collectible coins.

gold for sale

 

  • Gold Funds

Average investors who plan to invest in gold can go for gold funds. For instance, one can gain access to gold for sale via mutual funds which buy gold or use gold ETFs. ETFs can be traded like the shares of stock exchange. One popular ETF is the SPDR Gold Trust ETF.

 

  • Derivatives

The derivative market makes use of gold as an underlying asset. They are contracts which allow delivery of gold at some point of time. Usually, a forward contract on gold allows the owner of the contract the right to buy physical gold, at some point. Forwarded contracts OTC can be customized according to the buyer and seller. However, the future contracts work in the same way as forwards with a small difference. The terms of the contract is considered by the exchange and is not open to customization.

Call options can be used for getting exposure to gold for sale. However, it doesn’t oblige one to buy gold; whereas with forward contracts, buyer has the obligation to own gold in future.

  • Gold Mining Stocks

It can be a great way to gain exposure to indirect gold. While owning the stocks of companies which mine gold and sell it, may not allow an investor to get exposure to the precious metal. Gold companies hedge their exposure to the gold price risk for the derivative market. Hence, owning the shares can provide exposure to the profit.

Gone are the days when one only thought of investing in physical gold. Now, one can look into a wide array of investment options available for gold. Chose any option for your gold for sale and diversify your portfolio.

 

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