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Want To Invest In Gold But How To Do It?

Gold is regarded as a controversial asset and risk is always associated with it. But it has experienced a strong reversal in its fortunes and it is quite evident with the surge of an almost two-and-a-half year high post Brexit announcement. This has indeed created an curiosity in beaten down gold miner’s largest listed index at the NYSE Arca Gold Bugs surge of 124 % for the year to date. Though the global economy is performing poorly and is prone to crisis it is a high time for investors to hedge against the uncertainty by including gold to their portfolios and giving some exposure to it.
There are questions like what are the best ways to obtain this exposure because there are multitudes of possibilities when it comes to investing in gold. So what are the ways that can keep your investment generating more return and at the same time keeping you safe from the market fluctuation caused by many factors?

Here are the ways to invest in gold for sale and get the maximum return by keeping risk at bay:
One of the prime ways to invest in gold is to buy physical bullion that comes with many benefits. The minor problem with them is of liquidity which pressures small investors to buy gold at retail price and sell at wholesale price. Because of this there is a very visible difference between buy and sell price. So the gold price requires appreciating substantially for the smaller investors to sell at a profit. Beside this there is gold ETFs which has soared by 26 percent for the year to date. The largest gold ETFs among all is the SPDR Gold Trust ETF.  

In the past decade owning gold has become popular among the Wall Street investment gurus and billionaires and many of them have invested heavily in SPDR Gold Trust. But like the physical bullion it also has minor drawbacks. First drawback is that it doesn’t yield the similar leveraged exposed to gold that the gold miners offer. The second drawback is there is a return-eroding expense fee of 0.4 percent.

Another great alternative for investors are gold mining stock. The benefit of this is that they provide the same liquidity like the ETF and generate better returns because of the leveraged exposure to gold. This clearly means that when the gold price rises in a market they appreciate at a greater rate. Beside this many gold miners pay dividend to investors and this way the investors can generate income from gold which is a non-yielding asset. But investing in gold mining stock has its own dangers. Mining is generally an activity fraught that consist of significant risks which can hamper a miner’s bottom line.   

Gold Investment Mistakes You Should Avoid
Don’t be over enthusiastic with gold futures or options. Rising gold prices can make trading gold futures and other alternatives look more attractive. But remember that as an investor you can only profit in future linked deals by sorting out other future options by an appropriate margin to cover your commission cost and other trading cost.

Large numbers of gold futures or options traders initiate with a planned limit regarding the amount they are agree to lose before quitting. In most of the cases during the first six months most of the people lose their amount. Most of the option traders or gold future traders trade often and to a surprise the total commission they pay during the entire trading career is somewhat very close to the total losses on their commodity investment.


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