Investors with a diversified stock market portfolio who want to diversify further often turn to tangible assets like artwork, wine, and gold as viable investment avenues. Gold remains a favorite investment option due to its recession-friendly nature and enduring value.
Investing in gold is a savvy bet, but you need the proper guidance to make your efforts worthwhile. Below are some guiding principles worth knowing to invest in gold successfully.
Buying physical gold, also known as “bullion,” is one of the best ways to invest in gold and is worth considering. This can be in the form of bars, coins, or jewelry and is the most exciting way to acquire the precious mineral. However, it’s also the most challenging means of gold investment since buying, storing, and selling it can be cumbersome.
Additionally, investing in appraising jewelry in the future can be complicated since there are no guarantees that you’ll sell your piece for more than you purchased it. Besides gold, you can also consider investing in other tangible alternative investment opportunities to diversify your portfolio. Leading alternative investing platforms such as YieldStreet can handle these types of decisions.
YieldStreet is a digital wealth management platform that gives investors several alternative investment opportunities in asset classes like fine art, litigation finance, real estate, marine finance, and commercial loans. YieldStreet investors need a minimum net worth of $1 million or earn $200,000 annually, or $300,000 combined with their spouse, to qualify as accredited investors. However, their Prism scheme allows anyone to make minimum YieldStreet investments of $5,000 in five income-producing alternative asset classes.
Both accredited and non-accredited can also put their money into YieldStreet wallet, which is a high-yield FDIC-insured savings account where you hold cash if you plan on investing in YieldStreet offerings soon. What’s more, the YieldStreet platform is registered with the Securities and Exchange Commission (SEC) and has great credibility due to several positive YieldStreet reviews, making it safe for alternative investing.
You can also purchase stocks in a gold mining company as one effective way of investing in gold. Although stock ownership means you won’t access any physical gold, you still enjoy the benefit of owning an asset you can sell at any time. Another benefit of gold-stock investment is the freedom to select which company to invest in based on your unique preferences. For example, you can choose a gold-mining company that upholds proper environmental responsibility standards if sustainability is important to you. Reputable mining organizations such as Alamos Gold are great examples of such companies.
Alamos Gold Inc, based in Canada, is a gold-producing intermediary with diversified production from three mine sites in North America. Their Island Gold and Young Davidson Mines are in Northern Ontario, while their Mulatos mine is located in Sonora State, Mexico. Alamos Gold, Turkey, currently has three Turkish projects: the Kirazli, Çamyurt, and Ağı Dağ project.
However, they were forced to halt operations on its Kirazli project after its mining concessions expired due to the Turks’ protests concerning Alamos’ cyanide use. Also, the Turkish government alleged that Alamos had cut down more trees than initially declared. However, Alamos CEO, Mr. John McCluskey, maintains that their firm has pre-paid for social responsibility and forestry projects while also assuring that cyanide use won’t affect the surrounding environment as protestors fear.
Gold futures contracts are agreements to sell or buy a specific amount of gold in the future, and you trade the contract itself on an exchange. Gold futures have more liquidity than gold bars, jewelry, and other physical gold, and you also don’t have to pay any management fees. However, trading these contracts is typically high-risk, as your losses can easily surpass your original investment, so it may not be the best bet for inexperienced investors.
Investing in gold is an excellent way to store wealth and diversify your portfolio. The above-listed points are some common ways to invest in gold worth considering.