Welcome back dear loyal readers of Invest In The Stock, we are always very happy and honored to have you here with us again and in increasing numbers. In today’s article we will see how to invest in gold.
We’ll go and see how it’s done, how much it yields and whether it’s worth investing in gold today.
How does investing in gold work?
Let’s begin to see what is meant by investment gold.
At a time when the markets are experiencing a phase of uncertainty and instability, investing in gold remains one of the best options for savers.
Because this precious metal is one of the safe haven assets par excellence and continues to hold up well even when the markets are suffering.
There are several variants to invest in gold online, this is because in addition to physical gold there is also the possibility of investing in financial gold.
Types of investment gold
Investing in gold, based on the type of investment you want to make, can take on different connotations, for example:
This raw material can be used like any other and be included in trading operations to speculate on the rise or fall of its starting value.
In other cases, investing in gold in Italy can take on protective purposes for one’s capital, through the purchase of physical gold such as:
- Gold bars
- Gold coins or
- Jewels
Trusting that their value will gradually increase over time, since we are talking about a limited resource that retains its value.
There is also another type of investment gold, that is, inserting gold ETFs, futures or other assets that gravitate around the mining industry of this precious mineral in your virtual portfolio.
The possibilities, as you can see, are numerous and differ greatly from the purpose of investing in gold.
How to invest in gold and precious metals?
Let’s see now, concretely, how to invest in gold.
In practice, as mentioned above, there are two options for investing in gold:
- Physical gold and
- Financial gold
Let’s see the differences.
Physical gold
In the first case, i.e. physical gold, gold bars and coins, jewels and watches are bought, always in gold.
The latter is physically held by a third party, we usually talk about:
- Banking institutions or
- Insurance
That by paying warehousing costs they keep these valuable assets safe for customers. They have a sales tax of 26%.
Buying gold bars
If you decide to buy gold bars, also know that you have to take out gold insurance in addition to storage costs.
Opting for physical gold is a direct investment in the price of the latter. And every change of the dollar in the price of gold will inevitably change its initial value.
Investing in financial gold
Now let’s see what it means to invest in financial gold.
In this case it is possible to buy shares of gold companies or choose to focus on mutual funds that deal with precious metals.
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This type of funds guarantee advantages in terms of gold returns, essentially because physical gold is less volatile than the shares of these companies.
But in the past they have outperformed gold through several market cycles, because they can rely not only on the price of the commodity, but also on the profits of individual companies.
Funds specializing in precious metals, in fact, are owners of shares in companies involved in the extraction of gold and other precious metals.
Well diversified portfolio
For this reason, the advantage is to invest in a diversified portfolio of companies that also have other revenues and not exclusively determined by the value of gold.
An alternative to funds is the purchase of financial products that refer to gold price indices:
- CFDs
- ETFs
- Futures
Invest in gold online
Now let’s see which are the best specialized funds to invest in financial gold.
💎 Franklin Gold and Precious Metals Fund, Class A
This fund invests in companies specializing in commodities, particularly in the areas of Canada, Australasia and Africa, and has been in the market since 2010.
His three-year annuity is approximately 2.18%.
💎 The Funds World Gold Expertise Class R
It is another very profitable fund that invests in international shares of companies operating in the gold mining, metals and precious stones sector.
Also launched on the market in 2010, it guarantees approximately 2.50% yield over three years.
💎 Bgf World Gold Fund Usd Class E2 USD
The last fund we will deal with invests 70% of the total worldwide in shares of companies operating in the gold mining sector.
The fund, dating back to 1994 with a three-year return, lost 5.04% according to last year’s sector studies.
However, we recommend a broader portfolio diversification, to try to invest in more companies that deal with commodities. For example:
- Natural resources
- Alternative energies, very much in vogue in the current period, also thanks to the climatic situation and the exponential increase in the cost of energy, even for industrial use
Bet on specialized global equity funds to diversify your investments.
Is it worth investing in gold?
According to forecasts and studies by industry experts, this would be an extremely favorable time to invest in gold.
First of all, however, it is necessary to proceed with an evaluation of the price and the possible trend of the gold market.
Because it is in a good growth trend, due to the repercussions that the conflict in Ukraine has had on the economy in general.
Gold trend today
The price of gold is about to close the season with an average support threshold of over $1950 per ounce.
If the trend remains positive, gold is destined to return in a short time to around the average target of 1,980 dollars an ounce, to then rise again, reaching 2,000 dollars.
This is obviously an indicative calculation, but it could mean that it is a good time to decide to invest in gold.
So dear friends of Invest In The Stock, whether you intend to invest in physical gold through the purchase of bars or jewels or whether you think of doing so through international funds, we can certainly say that now is a propitious moment.
Also given the trend of the sector market to have good growth prospects in the value of the raw material in question, to start investing in gold.
Invest In The Stock, The Editorial Staff
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