Guide to Investing in Gold For Beginners

Departing on a journey without sufficient preparation will prove to be detrimental for anyone. If everyone is jumping on the same bandwagon, it does not necessarily mean it is beneficial for all. Investments particularly in gold have benefits and risks involved. It is best to know at least the basics before you depart in this journey. This guide to investing in gold is most useful for beginners

Important Steps

The first step as with any other investment is to learn. There are many other investments you can possibly be involved with. If you have chosen gold then you must know as much about it before you start investing. Remember that the success of an investor relies on his knowledge about investing.

There are various books and articles written about the topic of “guide to investing in gold”. They are available in published forms and over the internet. One of the most prominent books written on this topic is Michael Maloney’s Rich Dad’s Advisors: Guide to Investing in Gold and Silver. In summary, this book explains the value of precious metals throughout history and their potential in the future.

Most of the other steps you need to know about investing in gold are often outlined in books and articles already. As for this article, the next step should be choosing what form of gold you are to invest upon.

Gold mutual funds are often alluring but much to the dismay of most people who invest in them, they are investments made on companies who mine or convert gold into industry standard materials or items. Do not be confused when offered to invest in these. You may be investing your money for gold, but not the actual item. You place trust in the businesses that ensure that this metal does not become extinct and continue to become available for everyone’s use.

Gold exchange trade funds on the other hand may be gold mutual funds in a different form but there are certain ETF’s which let you invest in real gold. You can find a list of these funds over the internet. Some of which include the Claymore Gold Bullion ETF, Gold Bullion Securities, iShares Gold Trust, Julius Baer Physical Gold Fund, SPDR Gold Shares, Sprott Physical Gold Trust, and the ZKB Gold ETF.

Other ETF’s worldwide include the Central Fund of Canada and Central Gold Trust and Precious Metals Bullion Trust of Canada, Dubai Gold Securities and NewGold, ETFS Physical Gold and ETFS Physical Swiss Gold, and the Goldist ETF of Istanbul.

Digital gold currency or DGC are electronically available money based on gold measured by ounce. The gold certificates distributed from 1873 to 1933 are related samples. The DGC are newer versions of them. These can be cashed out when needed.

Physical gold includes bars, coins, and jewelry. These are preferred by many over other forms of gold as investments. These are easier to purchase and easier to sell as well. There are numerous gold dealers who can supply you with physical gold. You should, however, be aware of how to determine if the gold you are purchasing is pure or not.

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