Whether you’ve seen headlines about its rising price or you’ve learned about the ways it can help you through periods of economic downturn, there are plenty of reasons investors may be considering a gold investment today.
But if you’re not sure how to get started the process may seem daunting. Even if you’re a seasoned investor, buying gold can be a lot different than the asset types you’re used to — but it doesn’t have to be complicated. Below, we’ll discuss three easy ways you can invest in gold now.
3 easy ways to invest in gold today
These are three ways you can start to add gold to your investment portfolio today.
Open a gold IRA
If your investment goals are primarily focused on retirement, a gold IRA can be a good resource. A Gold IRA Is a self-directed form of individual retirement account. Like regular IRAs, you can choose between a traditional gold IRA or Roth gold IRA — or, if you’re self-employed, a SEP gold IRA.
There are a few things to keep in mind if you choose to invest in gold this way. For one, the gold you buy must meet IRS requirements regarding purity and fineness. You’ll also need to stay aware of annual contribution limits. Additionally, you must hold the gold you own with an IRS-approved custodian, which you can find on the agency’s website.
The easiest way to get started with a gold IRA is by using a gold investment company. These companies can help you set up your IRA and buy eligible gold, and then connect you with an approved custodian to maintain your investment.
Buy physical gold
Owning physical gold can be an investment in itself. Most often, physical gold comes in the form of gold bars or gold coins (these are forms of gold bullion). To buy physical gold, it can help to know what form you prefer (bars or coins) and the weight that makes sense for your budget. Look for local or online dealers and make sure you’re getting a good price by comparing what’s listed to current gold prices. If you plan to invest in physical gold, you may also want to consider how you’ll store it. For large amounts, it can be smart to insure your investment or consider purchasing safe storage.
Invest in gold stocks
One of the easiest methods for buying gold, if you’re already accustomed to investing through a brokerage, may be gold stocks. In fact, you can invest in gold ETFs or gold mutual funds that can help you gain exposure to gold in your portfolio.
Some gold funds invest in physical gold, so their prices move alongside the actual value of gold. Others offer more indirect exposure to gold, by investing in gold mining companies. In theory, these companies will increase in value as gold’s value increases.
You can invest in gold stocks through your regular brokerage, and unlike other options, don’t have to worry about storing the physical gold anywhere. If you think gold could make a good addition to your portfolio, consider speaking about the options that fit your financial plan with an expert today.
The bottom line
If you’re thinking about investing in gold, now can be a great time to start. Not only has gold’s price increased this year, but ongoing economic uncertainty and inflation could continue to push its value up further.
Just remember, if you’re diversifying with gold, experts typically recommend keeping your allocation to no more than 5%-10%. Whether you decide that a gold IRA, physical gold or gold stocks are right for you, a small amount of gold can help you benefit from the safe haven precious metal while growing wealth elsewhere in your portfolio over time.
