How to invest in gold? 5 of the most popular ways

1. Buy gold ETFs

If exchange-traded funds (ETFs) are the most convenient way to invest in stocks, so is gold. Just like stock ETFs, gold ETFs also represent physical objectsgold。

They can be traded like stocks and have the advantage that most major investment brokers exempt them from trading fees on ETFs. And because it converts physical assets into paper assets, it can easily be held in your portfolio along with other assets.

ETFs are the best way for beginners to invest in gold. They can be bought and sold through most major investment brokerages such as IG Markets, CMC Markets,etoro All can trade ETFs.

The advantage of gold ETFs is the indirect ownership of physical assetsgoldIt is much less risky than other options.

The largest gold ETF isSPDR Gold Shares(GLD)And iShares Gold Trust (IAU), but there are others as well.

2. Purchase physical gold investments

Many people will feel that investing in paper gold or gold derivatives cannot be seen or touched, so they will be more worried. Maybe you will feel that only when you see real gold can you feel at ease in your heart, so buying gold coins or bars is your choice.

No matter when it is stated, you can pay the price per ounce of gold, plus a small markup charged by the seller for the physical gold purchased.

When investing in gold in China, most platforms and markets are denominated in grams and denominated in RMB. So how much is one gram of gold in China now? On January 22, 2021, gold was 388 yuan/gram. (Shanghai Gold Exchange's real-time gold price today）

Bullion bars range from one gram (about 1/31st of an ounce) to 400 ounces. They have a lower markup because minting is not involved. Well-funded investors buy larger bars when they don't want to hold large amounts of gold coins. (Click to view the real-time price of international gold）

Gold coins have the advantage of being both recognizable and portable. This usually makes them easier to sell to a private party. The most common gold and silver coins areAmerican EagleThe Canadian Maple Leaf and the South African Krugerand, but of the three gold coins, only the Maple Leaf is pure gold.

There are tenths, quarters, halves and ounces. But be aware that low denomination coins cost more per ounce than one ounce coins. Some coins may contain alloys of other metals.

You can buy some physical gold through local gold jewelry or banks.

3. Buy gold mining stocks

Gold mining stocks are not direct investments in gold, but investments in companies that mine it. Their value is often far less stable than the gold bars themselves, largely because they are subject to all the other factors that determine the value of any stock.

Gold mining stocks have some particular issues that make them more volatile than most other stocks.

• Mining companies often operate in remote and often unstable regions of the world.

• Gold mining itself is capital-intensive, and a fall in the price of gold can cause a company's stock to plunge.

For this reason, gold mining stocks are speculative. They are mostly a play on rising gold prices. But they tend to be a bad investment in almost every other market cycle.

If you want to invest in gold mining stocks, it should be a small part of your portfolio.

Step 4 Buy gold futures

Gold futures This is a way to invest in gold using leverage. This is an investment method that requires certain trading skills, so it is only recommended if you have a good understanding of the gold market. In a futures contract, you agree to buy or sell a specific amount of gold at a pre-specified future date and price.

The value of this contract will fluctuate with the fluctuations in the price of gold, and there is a high chance of losing some or all of your investment, especially due to leverage.

For example, you might buy an option on gold at $1,800 per ounce before October 15th. In doing so, you are only putting in 20% of the cost of gold in the futures. If the price of gold goes up 20%, you will have a 100% profit. But if it goes down 20%, you will lose your entire investment.

5. Trade gold on foreign exchange platforms

It can be said that trading gold on foreign exchange platforms is currently the most popular way to speculate on gold. Because of its low threshold, high leverage, and convenient capital flow.

Almost all foreign exchange platforms support the trading of gold and silver, and most of them are traded on MT4 or MT5 software. The symbol of gold is XAU/USD, and the symbol of silver is XAG/USD.

Compared to physical investment in gold and other gold stocks and futures, trading gold on foreign exchange platforms requires very little capital. Generally, there is no cost to opening an account. You only need to deposit a few hundred dollars into your trading account to start investing in gold. However, we recommend depositing at least $1,000 to avoid any risk of liquidation caused by violent fluctuations in the market.

And the leverage is generally more than 200, there are 500, 1000. In the case of 500 times leverage, the capital requirement for trading 1 lot of gold (that is, 100 ounces of gold) is less than 400 US dollars, and in the physical investment of gold without leverage, you may need 180,000 US dollars of principal.

The flow of funds on the foreign exchange platform is also very convenient. Generally, funds are deposited in a timely manner, and withdrawals are also made within 1-3 working days.

The above are the advantages of trading gold on foreign exchange platforms, which are unmatched by other ways of investing in gold, but it is still important to note that the investment risk of foreign exchange gold is very high. Because leverage can bring more profits, it may also make you lose all your principal.