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In this guide, we will cover everything you need to know about how to invest in gold bullion, including the different ways to invest, the benefits and risks, and tips on how to get started.
Gold has been a store of value and a safe haven asset for centuries, making it a popular investment choice for many investors. Gold bullion, in particular, is highly valued for its purity and quality, making it a sought-after investment in the precious metals market.
Where to invest in Gold Bullion
When it comes to investing in gold bullion, finding a reputable dealer is crucial to ensure a secure and fair transaction.
The top 5 best gold bullion dealers listed in this guide offer a wide selection of high-quality products, competitive pricing, excellent customer service, and reliable shipping options.
| Dealer Name | Product Offerings | Customer Service | Payment Options | Shipping |
| JM Bullion | Wide selection of gold bullion coins and bars from popular mints | Responsive customer support and easy returns policy | Credit card, bank wire, PayPal | Free shipping on all orders |
| APMEX | Wide range of gold bullion products, including coins, bars, and rounds | Knowledgeable customer service and live chat support | Credit card, bank wire, PayPal, Bitcoin | Free shipping on orders over $99 |
| SD Bullion | Wide selection of gold bullion coins and bars, including popular designs and exclusive products | Helpful customer service and educational resources | Credit card, bank wire, PayPal, Bitcoin | Free shipping on orders over $99 |
| Provident Metals | Wide selection of gold bullion coins and bars, as well as other precious metals products | Excellent customer service and secure storage solutions | Credit card, bank wire, PayPal | Free shipping on all orders |
| Silver Gold Bull | Wide selection of gold bullion products, including coins and bars from around the world | Commitment to customer service | Credit card, bank wire, Interac e-Transfer | Free shipping on orders over $99 |
Note: Shipping and payment options may vary depending on the location of the buyer and the size of the order.
INSERT AFFILIATE ON THE BEST GOLD BULLION BROKERS
Ways to Invest in Gold Bullion:
1. Physical Gold Bullion:
One of the most popular ways to invest in gold bullion is to buy physical gold in the form of coins or bars. We do have a dedicated guide on how to invest in physical gold, you can check it out through this link.
Gold coins are available in various sizes and weights, such as the American Gold Eagle, Canadian Gold Maple Leaf, and South African Krugerrand. Gold bars, on the other hand, are available in larger sizes and are typically sold by weight.
When investing in physical gold, it is important to store it in a secure location, such as a bank safe deposit box or a home safe.
5. Gold ETFs
The way we define Gold ETFs is that they are exchange-traded funds that invest in physical gold. Gold ETFs are designed to track the price of gold and provide investors with exposure to the gold market without the need for physical storage.
ETFs or Gold Unit Trusts?
We’ll go into ETF’s a bit deeper in this section. ETFs are Exchange-traded funds and they basically purchase gold on behalf of the investor.
So whenever you buy a share of an ETF you are buying the equivalent of that amount in gold, just not physically of course.
The ETF tracks the commodity price so whenever the underlying asset price (Which in this case is gold) increases, then the value of your ETF increases semi proportionally to the rise of price in said asset.
Pros of Investing in Gold ETFs:
- Gold ETFs offer investors a convenient way to invest in gold without the need for physical storage.
- ETFs are highly liquid and can be easily bought and sold on stock exchanges.
- Securities Gold ETFs can be used as a hedge against inflation and economic uncertainty.
Cons of Investing in Gold ETFs:
- ETFs charge management fees, which can eat into investors’ returns over time.
- Gold ETFs do not offer investors the same sense of security and control over their investment as physical gold.
- These financial instruments can be subject to market volatility, leading to potential losses for investors.
Gold ETFs you can buy
Here are the three of the largest ETFs, these include:
| ETF | Expense ratio |
| SPDR Gold Shares (GLD) | 0.4 |
| iShares Gold Trust (IAU) | 0.25 |
| Aberdeen Standard Physical Gold Shares ETF (SGOL) | 0.17 |
3. Gold Futures:
Gold futures are contracts that allow investors to buy or sell gold at a predetermined price and date. Futures contracts are traded on commodity exchanges, such as the Chicago Mercantile Exchange.
Futures trading is considered a more advanced investment strategy and requires a higher level of knowledge and expertise.
4. Digital Gold
Also known as gold-backed cryptocurrencies, digital gold is a relatively new option for investors looking to invest in gold. Digital gold is a type of cryptocurrency that is backed by physical gold held in reserve.
Pros of Investing in digital Gold:
- Digital gold offers the convenience of trading cryptocurrencies while being backed by physical gold.
- Digital gold eliminates the need for physical storage and transportation of gold.
- Digital gold can be traded 24/7, making it a more accessible investment option.
Cons of Investing in digital Gold:
- Digital gold is still a relatively new investment option, and it is not yet clear how it will perform over the long term.
- Digital gold can be subject to cyber-attacks and hacking, posing a risk to investors’ funds.
- Digital gold is not yet widely accepted as a form of payment, limiting its utility as an investment option.
This is definitely a very interesting option especially for young investors who are more tolerant to taking risks and who want a commission-less alternative to ETF’s or gold mutual funds or futures.
Benefits and Risks of Investing in Gold Bullion:
Benefits:
- Diversification: Investing in gold bullion can help diversify your investment portfolio and reduce risk.
- Hedge Against Inflation: Gold has historically been a hedge against inflation, making it a popular investment choice during times of economic uncertainty.
- Safe Haven Asset: Gold is often considered a safe haven asset, which means that it tends to retain its value during times of economic and political turmoil.
Risks:
- Volatility: Like any investment, the price of gold can be volatile and subject to sudden price swings.
- Storage and Security: Investing in physical gold bullion requires proper storage and security, which can add additional costs and risks.
- Liquidity: Physical gold bullion can be difficult to sell quickly, which can be a problem if you need to liquidate your investment quickly.
Tips on How to Get Started:
- Determine your investment goals and risk tolerance.
- Choose the right investment vehicle for your needs.
- Research the current market conditions and trends.
- Find a reputable dealer or broker.
- Consider working with a financial advisor who specializes in precious metals investing.
Comparing different methods on how to invest in gold bullion
| Investment Vehicle | Pros | Cons |
| Physical Gold Bullion | Tangible asset, Potential for appreciation | Requires proper storage and securityLiquidity issues |
| Gold ETFs | Easy to buy and sellNo storage required | No ownership of physical gold, ETF fees |
| Gold Futures | Potential for leverage and profit | Advanced investment strategy, requires expertise |
Bottom Line
Investing in gold bullion can be a great way to diversify your investment portfolio and protect your wealth against inflation and economic uncertainty. Whether you choose to invest in physical gold, gold ETFs, or gold futures, it is important to understand the benefits and risks associated with each investment vehicle and to choose the right strategy that aligns with your investment goals and risk tolerance.
Remember to conduct thorough research, work with a reputable dealer or broker, and consider seeking the guidance of a financial advisor who specializes in precious metals investing. By following these tips and guidelines, you can navigate the world of gold bullion investing with confidence and potentially reap the benefits of this valuable asset.
