How to invest in Gold?

There has been a lot of discussion about Gold as an investment class and for people who are interested in buying – gold, there are several options.

Gold ETFs

You can invest in gold by buying gold ETFs. Here is a list of some Gold ETFs.

1. SPDR Gold Trust ETF (NYSE: GLD)

2. ISHARES COMEX GOLD (NYSEArca: IAU)

3. POWERSHARES DB GOLD (NYSEArca: DGL)

Gold Mutual Funds

There are a few mutual funds that invest in stock of precious mining companies, as well as in gold and silver directly. This link has a detailed list of Gold Mutual Funds.

Gold Stocks

Apart from these ETFs, the other way of investing in gold is to own gold mining and exploration stocks. Here is a list of certain gold related stocks:

1. Barrick Gold Corporation (NYSE: ABX)

2. Kinross Gold Corporation (NYSE: KGC)

3. Agnico Eagles Mines Ltd. (USA) (NYSE: AEM)

There are several other gold stocks that I have left out. The reason I left them out is that they were either penny stocks or their operating history was less than ten years.

Gold Coins

Buying gold directly is slightly more complicated than you may expect. This is because there are several different types of gold products, and different dealers offer them at different prices. Gold coins and Swiss Gold bars are common ways of buying gold directly.

Here is a list of popular gold coins:

1. American Gold Eagle Bullion Coins

2. Canadian Gold Maple Leaf

3.  Krugerrand Gold Coins

Swiss gold bars are also a very popular way of  buying gold directly. There are two popular type of Swiss gold bars:

1. Swiss Pamp Gold Bars

2. Credit Suisse Gold Bars

Gold coins and gold bars can be bought directly from the US Mint, and other gold dealers – both online and in stores.

Gold Stock and ETF – Derivatives

A slightly more sophisticated way of investing in gold is buying derivative options of gold mining stocks or gold ETFs. I have discussed one such option in a recent post about – buying out of money call options of gold stocks.

These are the most common ways of investing in gold and even other precious metals. I have deliberately left out Gold ETNs and Warrants that are issued by Gold companies. This is because they are more of a debt product, than a gold product.

7 thoughts on “How to invest in Gold?

  1. Pingback: » How to invest in Gold | OneMint » Gold Stock Investment
  2. Hi, I want to know if buying 24K/22K gold coins from retailers like Tanishq is a good idea or not.
    What about its resale? do they buy back? Would
    other jewellers buy it without deducting any charges?
    request your inputs on this.

    Regards,
    Pratyush

  3. Hi !! buying gold coins is for investment purposes and not to wear it, hence in that case buying gold in the form of paper gold makes more sence. Small investors go for Gold Funds and moderate investors go for Gold ETFs.We loose much higher in gold coins

  4. Hello

    I feel that Gold as a asset specially for us indians remains attractive and will continue like this. Its estimated we hold 20000 tonnes of gold. With new policy initiatives it hasnt lost its sheen. Gold must be part of an investment portfolio, both for economic and emotional reasons.

    Keep buying gold jewellery of Gold coins. Remember to ensure you buy from someone who gives you a guarantee that whereever you sell it you will get full value. Else small shopkeepers and some good retailers normally deduct. Choose brands that dont do so.

Leave a Reply

Your email address will not be published. Required fields are marked *