The 4 Best Ways Of Investing in Gold,

If you are interested in investing in gold, here are excellent ways in which you can invest in the precious metal:

Direct ownership

Here you buy gold and keep it in your house. The main advantage of buying and keeping the gold is that it doesn't lose its value. Although, the metal's price is very volatile over the short term, it tends to retain its value over the long run.

This is unlike money whose value greatly changes depending on the economic status of the country or the world at large.

While owning gold has its benefits, its main disadvantage is that it tends to trade with wide spreads between the bid and ask prices. This means that you can't make a lot of money within a short time; you need to trade for a long time or experience a big price jump.

Whether you make large profits or not, owning gold is one of the best ways of preserving value. One of the best forms of gold ownership is through minted coins. Some of the best coins include: Canadian maple leafs, one ounce South African Kruggerrands, and American Eagles.

Gold exchange-traded funds

Exchange trade funds popularly known as ETFs are types of mutual funds that usually trade on the stock exchange just like ordinary stock. The good side with ETFs is that they concentrate on one line of business.

This means that if an ETF is concerned with trading gold, it can't change to another metal. This protects you since you know that the ETF can't change and start trading on another metal.

To invest in these funds you only need to approach the company offering the services.

Gold mutual funds

If you are skeptical of investing in physical gold, but you want to be exposed to the precious metal, you should go for gold mutual funds. These funds usually tend to hold portfolios of senior gold stocks of some of the best gold mining companies. Investing in these funds is very wise as you are assured that the companies can't collapse.

Gold options

If you are a sophisticated and experienced investor, you should go for gold options. Options allow you to speculate gold prices and price movements. The good side with options is that they allow you to control a large investment with a small and limited amount of money.

Although, you can make a lot of money with gold options, the investment is usually very risky; therefore, you should exercise a lot of caution when investing.