A Beginner’s Guide to Gold Investment

Closeup image of gold stamp

Share This Post

Gold is an excellent and withstanding choice for investment for a multitude of reasons. It can be used as a hedge against inflation and will retain or increase in value due to increasing scarcity. Gold is also a great portfolio diversifier for investors of many kinds.

So, what types of gold should you invest in as a beginner?

As gold becomes scarce and currencies fluctuate in value, the value of gold may increase. For investments in gold in the long-term, you can invest in both funds that invest in gold and physical gold, because their values move closely with the gold market’s price. Many investors choose to physically invest in gold to have a more reliable and fool-proof investment in the market.

Keeping physical gold in the long-term can be costly, however, because there is often a cost associated with storing it. It may also take time to liquidate the investment into cash and storing gold this way does not generate interest or dividends.

Want to learn about the different types of gold jewelry on the market? Read more here.

Alternatively, you can invest in the gold market and gold-related investments, which include a variety of methods and fund types to choose from. But – there are some drawbacks and costs to market investments that investing in physical gold does not have.

Do you want to know the value of your physical gold investment? Contact us today for a free consultation.

Here are a few different ways you can start investing in gold as a beginner:

Physical Gold Investment

If you want to have an investment that better withstands the economic crisis, physical gold may be the best choice for you.

Physical gold stores its value in the form of a tangible physical object, just like cash in your wallet. Physical gold can also be used to hedge against inflation, or as a portfolio diversifier.

Much like other investments, there are risks and fluctuating prices directly linked to the economy. Always keep an eye on gold prices before you decide to sell physical gold.  

Physical gold is readily available and can be purchased or sold at  Westlake Gold and from professional jewelers. You can choose between common types of gold like gold coins or gold bullion bars. Gold bars are generally priced lower than gold coins, as coins tend to have intricate designs that create a higher premium.

Do you want to know the value of your physical gold investment? Contact us today for a free consultation.

Trading in the Gold Market

If you want to have easier options with no storage costs, gold market investments may be the best choice for you.

Options include gold-related investments, including stocks in gold-mining companies, gold-backed ETFs, mutual funds, options, and futures. These will allow you to easily fund, capitalize, and trade during changes in the gold market. ETFs and mutual funds provide a lower-cost way to enter the gold market and diversify your investment, while futures and options carry higher risk and reward.

It is important to keep in mind when investing in ETFs or mutual funds that they may invest in gold-mining stocks. Their ultimate performance may be influenced by more than just the gold market price, including the gold-mining companies’ expenses and performance.

To start trading, sign up with a trading account. Keep in mind that you will have to pay a broker fee. Your investments will also be affected by market risks other than gold prices and USD exchange rates.

Need to determine if your gold is real? Read our guide here.

Photo by Anne Nygård on Unsplash

More To Explore

Image of gold bars closeup. Gold Bullion.

The Valuation of Gold Bullion

Gold bullion, often regarded as a symbol of wealth and prosperity, has been a cornerstone of the global economy for centuries. Its value is a