Gold isn’t just pretty and shiny. Gold can provide investors with a golden opportunity to hedge against inflation and earn more money for their wallets. As part of commodity investing, investors everywhere are dying to make gold a part of their portfolio.

There are many ways you can add gold to your investment portfolio. You invest in physical gold such as bullion coins and bars. There are also Gold IRA’s, mining company stock, and jewelry, (amongst other things), in which you can invest. Here are all the ways you can invest in gold.

Gold Coins

This is one of the most popular methods of investing in gold. Gold coins have been issued by lots of different countries from around the world, which makes them highly sought-after collectibles. They are commonly purchased from dealers such as ICCoin or other dealers that offer gold coins from domestic and international governments.

Gold coins are easy to purchase, and due to their small size, they are easy to store. It makes them a far more convenient physical investment than larger bars. And since they are so popular, you don’t have to worry about finding a reputable dealer since there are so many.

The only thing you should be aware of is their high collectability rate. Since there are a lot of older or rare coins that are highly sought after, they are marked at a much higher price than their gold value. If you are looking to purely invest in gold coins and not collect the rare ones, then stick to the ones that are highly circulated. That way you can save money.

Bullion Bars

This is probably the most popular method in physical gold investment. Bullion bars are a pure form of gold. They can also be coins, but most people know them by the bars. Bullion is often used in Gold IRAs since there are restrictions on what kind of gold is allowed in IRA accounts. This makes it easier for you to move your gold into an IRA if you so desire down the road.

The most common issue with gold bullion is that its size makes them hard to store. And they are not very liquid investments. If you are holding onto expensive bars, you cannot exactly sell the port of a bar. You have to sell the entire bar of gold and that can sometimes make it difficult for you to sell to someone. This is why it is best to invest in the smallest sized bars, that way you can sell and buy as much as you want when you want because they’re a little easier to manage.

Gold IRA

You probably have an IRA account right. IRAs are independent retirement accounts that help you save money and invest in your future. As we age, there will come a time when we cannot work anymore. Retirement can be a scary and exciting time for many people depending on several factors, such as affordability.

Gold IRAs work exactly as regular IRA accounts. The main difference between the two is that a gold IRA invests in Gold, whereas a regular IRA invests in monetary items. With a Gold IRA, there are a few things you are going to have to do to avoid fees and penalties.

First things first, you need to have a custodian hold your gold for you. The IRS will consider it a withdrawal or closure of your account if you store the same gold in your gold IRA in your home. It is also super dangerous to have a large amount of gold in your home, regardless of whether it is secured in a vault or not.

The second thing you need to know is the tax implications and penalties. I will not get into the specifics, but there are a lot of tax implications when you invest in gold IRAs. It is important you know how to avoid these penalties and fees, by following the laws associated with the account.

I always recommend talking to a tax expert or a financial advisor before you invest in a gold IRA. That way you can be sure you are getting all the tax breaks you can and avoid those pesky fees and penalties so you’re not paying more than what you need to.

For more information about IRA accounts, follow the link. https://www.nerdwallet.com/article/investing/learn-about-ira-accounts

Mining stock

There are several large companies out there that mine gold directly from the ground. These are super lucrative companies, and their stocks tend to do well. Since gold is always in demand, mining companies are too.

 A lot of people do not realize that investing in gold mining companies is a great way for them to invest in gold, without having the burden of storing it. The one thing you should be aware of when you invest in a mining company, while they are pretty safe investments, they are still stock and can be susceptible to crashes.

The second thing you should be aware of is that not every mining company is a reputable one or a safe one to invest in. Smaller or newer companies are susceptible to crashes since they have to compete with the larger companies. Do your research before you buy stock. Make sure the company is strong, so you are not investing in something negative.

Other options

If you want more ways to invest in gold, there are still more options. For example, there are gold EFTs and gold jewelry in which you can invest. These can be great options for experienced investors or serious collectors who like the idea of collecting different kinds of jewelry.

For more information about EFT’s, click here.

Conclusion

Do your due diligence. Make sure you are not investing in something that could negatively hurt you. Always make sure you are dealing with a reputable dealer so you do not have to worry about scammers or fraud, which can be commonly found precious metals.

With any investment, start out small so you can get a feel for your new prospect. It is easier and safer that way too!