Gold has been a symbol of wealth and stability for a long time. Its historical performance in the markets and reputation as a reliable medium of exchange and hedge against inflation make it one of the best investment options for investors of all sizes. However, investing in gold can be expensive. Here are some ways to invest in this precious metal with a limited budget.
Buy Smaller Physical Bars
Did you know you can buy a 1-gram gold bar? The price of gold hovers around £1,500 to over £1,700 depending on several factors and market forces. However, you do not have to buy a kilogram of gold if you do not have that amount to invest right now.
Instead, you can buy smaller quantities, like the 1-gram pure gold bars sold by Bullion Giant. You could also buy by the ounce, with quantities typically starting at a quarter ounce. If you decide to go this route, you can set aside an affordable amount every month and increase the quantity as time passes.
Because the value of gold typically trends upwards, you can expect significant realised profits if you do this for a long period. This is a great strategy for long-term investors who want to use gold as a store of value or investment vehicle.
Micro-investing in Gold ETFs
Brokers can help you access exchange-traded funds (ETFs) that track the price of gold. Many of the available ETFs allow you to invest in tiny fractions of an ounce, making them affordable for all types of investors.
Like investing in smaller gold quantities, you can always start with a small amount and increase the investment amount over time. Doing this will allow you to build your gold position without a high upfront cost.
Invest in Mining Companies
Instead of buying physical gold, you can also invest in companies involved in mining or researching gold. Many of these companies are publicly traded, so you can easily ask your broker to give you a list to check out.
Keep in mind that share prices rise and fall over time, so you should be prepared to invest for the medium to long term to realise substantial gains.
Companies with strong environmental practices that value the ethical sourcing of gold tend to perform well and will align with your investment goals and environmental values.
Buy Gold Jewellery
Gold jewellery is typically considered a good investment because it holds its value well over time. However, understand that not all gold jewellery is a good investment.
A general rule is to avoid gold-plated jewellery. Buying such jewellery might be cheaper, but you only get a small amount of gold. This means it will not have as much value in the future, and the amount might be less than you anticipated.
Research reputable sellers and how to identify solid gold jewellery to ensure you end up with ones that will hold value over a long period.
Gold remains one of the best investment options because it holds its value during inflationary times and increases its value in times of economic turmoil. The best thing about this investment option is that you do not necessarily have to invest a huge sum. With a little creativity, you can build a sizable gold position over time and profit in the future.