How Much Money Should I Invest in Gold Based on The Type of Gold
How much money should I invest in gold? It depends on the type of gold you want to invest in. You can invest your money in jewelry, physical gold, gold certificates, gold ETFs, gold mining stocks, and others. No matter the type, invest in gold is good to keep your money safe in any condition, including inflation or recession. Check the information below for further information.
How Much Money Should I Invest in Gold?
1. For Physical Gold
You can start your investment portfolio by purchasing physical gold or bullion. The cost of bullion depends on its weight. The bigger the gram, the more costly the gold. The good thing is that you can buy gold bullion by spending less than $150. Physical gold can be in the form of a bar or coin. Gold coins are more affordable than a bar. It is good for beginner investors who want to start to invest money in gold. You can buy bullion or coins right away at a trusted gold dealer. The benefit of buying bullion or coins is that you can see, touch, and save it by yourself.
2. For Gold Stocks, Mutual Funds, and ETFs
Gold stocks, mutual funds, and ETFs are other alternatives to investing in gold. The process is a bit complicated since you need a brokerage account. You don’t need to worry about that because you can use a trusted online broker to open your account. The idea of opening an account is to fund it. Then, you can start to pick the gold you want to invest in. Place the order on your broker’s website if you want to invest in gold stocks. So, how much money should I invest in gold if I want to buy stocks or ETFs? Imagine that you can start to be an investor in gold stocks, mutual funds, and ETFs for only $10 to $15. On the other hand, you still have to spend extra money on the broker and other things.
3. For Jewelry
Invest your money in jewelry if you love to wear it. The good thing about investing money in jewelry is that you get something beautiful to see and wear. The cost of jewelry varies based on the model and karat. Most gold dealers offer 22 and 24 karat gold jewelry. You may start this investment by spending around $200 in gold jewelry. The things you have to consider when investing in jewelry are the commissions and fees. The number of commissions and fees you have to pay is often higher than gold bullion or coins. It is because of the value of design. Let say an online jewelry store takes up to 20% of commission or fees based on the metal weight. Some others, even can mark up the price of gold jewelry up to 35%.
No matter which one of the instruments you take, you have to understand it well first. You may take the physical gold version if you want to keep it by yourself. On the other hand, you can buy gold jewelry if you love to wear something you invest in. Gold stocks, mutual funds, or ETFs are perfect for those who have more money and want to get involved in this industry. How much money should I invest in gold? It goes back to your preference and the amount of money you want to expense in this investment.
Leave a Comment