How To Invest In Gold (Best & Easy) Gold Investment To Make - YouTube

Channel: Penny Flow

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Welcome to penny flow, where we talk about聽 money, wealth, investing, and management.
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And in today鈥檚 video we will be聽 talking about How to invest in gold,聽聽
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please make sure you stay聽 tuned to the end of this video.
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Ways to start investing in gold.
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Number 1. Buy gold futures.
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Gold futures allow you to lock in your聽 gain or mitigate your loss at any moment!.聽聽
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If you buy gold futures based on real gold, you do聽 not take delivery until the contract has finished,聽聽
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minimizing storage needs in the meantime.聽 To avoid ever having to store real gold,聽聽
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you may opt to roll the investment into other聽 vehicles! Accessible in the United States through聽聽
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the Chicago Mercantile Exchange, via a futures聽 broker. Owing to the volatile nature of futures聽聽
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and options, they may be unsuitable for certain聽 investors. Futures remain the cheapest way to buy聽聽
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or sell gold without paying large sums. Options聽 for the future are an option for purchasing a聽聽
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futures contract directly. These give the option聽 holder the right to buy the futures contract at聽聽
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a fixed price within a certain span. You will聽 need to open a brokerage account to get started.
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Number 2. Buy physical gold.
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When it comes to physical gold, you will typically聽 work with dealers outside traditional brokerages,聽聽
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and you will also need to pay for storage聽 and get insurance for your investment.聽聽
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Physical gold refers to actual gold that you have聽 and are easily accessible. The three main options聽聽
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for investing in physical gold are bullion,聽 coins, and jewelry. For investors who are聽聽
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more used to trading stocks and bonds online investing in physical gold can be overwhelming.聽聽
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Internet Investment Gold allows investors to聽 purchase physical gold online! store it in a聽聽
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specialist vaults, and take care of it should聽 the need arise. As such, Internet Investment聽聽
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Gold offers investors a highly convenient way to聽 benefit from outright physical possession of gold.聽聽
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By stalking pawn shops and estate sales,聽 a great way to find tangible gold. Gold聽聽
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coins and gold jewelry often turn up at such聽 places, and you can snatch them for pennies.
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Number 3. Buy Gold Coins.
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You may be able to find better deals for gold聽 coins from local collectors or pawn shops,聽聽
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but making transactions using a legal, licensed聽 dealer is also generally safer. The most common聽聽
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gold coins weigh one or two ounces, but half聽 ounce and quarter ounce coins are also available聽聽
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for decades, vast quantities of gold coins have聽 been issued by sovereign governments worldwide.聽聽
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Gold coins are often minted in smaller sizes (one聽 ounce or less), making them more convenient for聽聽
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investing in gold than larger bars. With a聽 restricted quest, reliable dealers can be聽聽
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found and are located in several major聽 cities. In global financial journals,聽聽
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their rates are readily available. Uncommon gold聽 coins have above the intrinsic value of the gold.聽聽
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Gold coins, whether a home safe or a bank聽 secure deposit box, need safekeeping.
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Number 4. Buy Gold Mining Stocks.
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Invest in gold stocks rather than bullion: invest聽 in gold by gold mining stocks. Unlike Bullion,聽聽
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these inventories have at least the potential to聽 generate revenue. Investors can make investments聽聽
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in the shares of gold mining companies. Stocks聽 of gold mining companies can correlate with the聽聽
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gold price. To buy gold indirectly, you might also聽 want to consider investing in gold mining stocks,聽聽
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although these companies' share prices do not聽 follow the value of gold very well over the long聽聽
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run. The growth and return of the stock, depends聽 on the estimated future profits of the company,聽聽
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not just the value of gold. Since mining companies聽 succeed or fail based on their operating success聽聽
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and how they distribute their capital and聽 generate revenue, gold stocks do not necessarily聽聽
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move in line with bullion prices. Often used聽 as complementary investments are investments聽聽
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in gold and gold mining firms!. By building聽 new mines and increasing their production,聽聽
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high quality gold stocks would pay off well聽 even if gold goes sideways for a long time.
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Number 5. Invest in gold mining companies.
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Gold miners are at risk of default and in the聽 event of an operational problem with the company,聽聽
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their stock will trade lower regardless of the聽 price of gold. Investing in these types of firms聽聽
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can be an easy way to profit from gold, and it聽 can also be less risky than other investment聽聽
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strategies. Gold mining firms can provide a safer聽 way of investing in gold than by buying Bullion聽聽
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directly. The price of gold will also benefit聽 businesses specializing in mining and refining.聽聽
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Exposure to gold is given by聽 investments in gold mining companies.聽聽
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These companies carry operational risks that聽 can break the connection between gold prices.聽聽
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The largest gold mining firms have extensive聽 global operations, so business conditions play聽聽
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a role in the success of such an investment,聽 similar to many other large companies.
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Number 6. Buy Gold Funds.
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Gold funds are a type of mutual fund which,聽 directly or indirectly, invests in gold reserves.聽聽
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Usually, investments are made in stocks of聽 syndicates producing and selling real gold and聽聽
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stocks of mining companies. Individual companies聽 are also subject to problems such as political聽聽
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concerns or environmental issues that are not聽 related to bullion prices. Several gold funds聽聽
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of different kinds exist.Investors interested聽 in a more liquid and low cost entry into the聽聽
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gold market should consider mutual funds and聽 exchange traded funds that mirror the commodity.聽聽
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Gold stock movements growing and dropping聽 faster than the gold price itself.聽聽
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Some are actively managed index funds聽 that use futures or options to monitor聽聽
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business trends or the price of bullion.聽 A higher risk way to play is to invest in聽聽
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an ETF that contains gold stocks, but聽 has the opportunity for appreciation.
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Number 7. Buy Gold Bullion.
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Gold is more affordable for the average investor聽 since it is easy for an individual to purchase聽聽
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gold bullion from a precious metals dealer or聽 a bank or brokerage in some cases!!. Bullion聽聽
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bars are available in sizes ranging from a聽 quarter ounce wafer to a block of 400 ounces,聽聽
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but typically coins are the option for聽 new buyers. A gold bar is also known as聽聽
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gold bullion which is a quantity of refined聽 metallic gold of any kind created by a bar聽聽
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manufacturer that meets standard specifications聽 for processing, labeling, and record keeping.聽聽
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Gold bullion is any sort of pure or almost pure聽 gold that has been certified for it's weight and聽聽
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purity. This involves coins, bars, etc, of聽 any scale. A serial number is most commonly聽聽
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applied to gold bars for authentication聽 purposes. Far more liquidity is provided聽聽
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by bullion held in smaller bars and coins聽 and is very popular among gold owners.聽聽
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Larger gold bars, which are formed by pouring聽 the molten metal into molds, are called ingots.
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Number 8. Buy Gold Jewelry.
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Gold has been regarded for a long time聽 as a healthy source of investment.聽聽
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To improve the overall value and appearance of聽 the jewelry, gold is often combined with other聽聽
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precious gems and metals. Gold jewelry helps聽 the gold investor to also enjoy the luxury聽聽
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of wearing it. Gold jewelry buyers are shown to聽 be very price sensitive, purchasing less if the聽聽
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price rises rapidly. Better jewelry prices聽 can be found at estate sales and auctions.聽聽
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The advantage of buying jewelry this way is that聽 there is no retail markup; the downside is that聽聽
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the time spent searching for quality pieces聽 is stored, but the belief that jewelry is an聽聽
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investment is naive. There is too much of a gap聽 between the price of most jewelry and the gold聽聽
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value to be considered a true investment. The聽 finest investment choice is natural saltwater聽聽
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pearls. The majority of their importance comes聽 from the fact that it is very hard to find them.
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Number 9. Invest in gold ETFs.
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Investing in gold ETFs and mutual funds, while聽 offering more liquidity than physical gold and聽聽
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more diversification than individual gold stocks will give you exposure to the long term stability聽聽
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of gold. A wide variety of holdings are exposed to聽 you through gold ETFs. Although gold ETFs can be聽聽
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a good investment, they come with a great deal聽 of counterparty risk inherent in their custody聽聽
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chain. You can purchase more shares over聽 time to increase the sum of your investment.聽聽
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Gold oriented mutual funds or exchange聽 traded funds (ETFs) shares can be bought聽聽
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by more conservative investors. Several聽 different kinds of gold funds are available.聽聽
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Some are actively managed index funds! which聽 monitor market movements or bullion prices聽聽
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using futures or options!!. It can help you聽 hedge your exposure by buying a gold ETF.聽聽
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Selling a gold ETF will serve as a hedge if聽 your portfolio has exposure to the upside. This聽聽
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approach is simpler and more cost effective than聽 direct ownership of bars or coins, particularly聽聽
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for small investors, as only the price of a聽 single ETF share is the minimum investment.
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Have you ever bought gold? How did you go聽 about it? Leave your thoughts in the comment