Many people choose gold to invest and this trend hasn’t lost momentum in recent years. By investing in gold you can hedge yourself against inflation and besides, you can earn more in today’s world, in which crisis, wars and regional clashes continue to rise more and more.
You can invest in gold in various methods and we will explain today how much advantageous or safe is it to invest in gold in each of the options.
Gold to Philippine Peso since June 2019
Gold ETF
Our list starts with Gold ETFs. Basically, we can call them funds investing in the physical gold. To select this option, you need a trading account, and that is all! And actually, this method is more profitable compared to investing in physical gold. SPDR Gold Shares, iShares Gold Trust and SPDR Gold MiniShares Trust might be considered as significant Gold ETFs.
Instead of keeping physical gold, gold ETFs allow your money to be invested in pure gold by 90% and the rest of your investment goes to the debt instruments.
Gold Mining Stocks
Just like investing in ant stock markets, you can invest in gold mining stocks. As you can imagine, gold mining stocks are related to the companies involving in mining of the gold (and some might involve other precious metals).
Under usual market conditions, the performance of them are very directly related with the performance of the gold worldwide. The other factors that might affect the performance of these stocks can be the cost of production (equipment, workforce, fees, etc.) and hedging efforts of the mining company.
Physical Gold
The most conservative approach to the gold investment is investing in physical gold. It is a very old method. Basically, you buy physical gold and you become a gold investor. You can get gold jewelry, which can be easily bought from any jeweler and the return rates purely depend upon the current gold rates (but of course buy and sell fees and other taxes might step in this scenario).
Another option is that you can purchase gold bars and coins, which is an effort not very different from purchasing from the jewelry, but these are made of pure gold and does not include any jewelry production or labor charges.