TYPES OF GOLD INVESTMENT

Investors can invest in shares of gold investment companies.  Gold mining company stocks may correlate with the gold price. However, the growth and return in the stock depend on the expected future earnings of the company, not just on the value of gold. Factors such as effective management, production costs, reserves, mine exploration and project development, and hedging activities are some of the factors to consider when deciding whether to buy gold mining stocks. As such, investments in gold and gold mining companies are often used as complementary investments.

Gold investment companies have traditionally come in the form of stock brokerage firms capable of handling a wide variety of transactions, but there's a new growing trend in the financial industry. This rapidly evolving trend represents an entirely new way of saving money for retirement. Rather than forcing their customers to buy traditional asset classes like stocks and bonds, these new investment firms are giving investors the opportunity to buy a variety of precious metals.

TYPES OF GOLD INVESTMENT:

There are some types of gold investment are listed below:

PHYSICAL GOLD:

Physical gold is a part of most people's investment portfolio. Physical gold could be invested in the form of gold jewelry, gold coins or gold bullion. The advantage of physical gold: investor has the direct ownership, and keeps value. The disadvantage is: privately stored gold is with low liquidity, the costs are high which including delivery and processing fees.

GOLD MINING STOCKS:

Gold investment companies do not directly invest in gold but in gold mining companies. Compare with other gold investments, it is more speculative. Gold mining stocks carry risks, thus, as the investors would like to invest gold mining stocks should think again. This investment way need the investors have a broader risk tolerance, and can accept the possibility of gold-based losses in exchange for the potential for triple-digit gains.

GOLD MUTUAL FUNDS:

Gold mutual funds are another way to invest in gold. It's suitable for those investors who would like to invest in physical gold, but still desire some exposure to the precious metal. However, be careful of high annual charges that may plus hidden charges, and analyze the offering prospectus prudentially.

GOLD BACKED SECURITIES:

Gold backed securities are one of gold investment ways which indirectly invest gold. It combines the benefits of physical gold bullion with the liquidity of the traditional securities market.