Best Gold Stocks To Invest In 2017

Investing in Gold

Investing in Gold can help diversify and protect your portfolio from the volatility of stock markets. It can be an important part in a retirement plan.

Investors can choose from physical gold coins and bullion, exchange-traded funds that track gold prices or mutual funds that buy shares of precious metal mining companies. All of these options have different costs and levels of risk.

It’s a Safe Haven

Gold is often considered a safe-haven asset in times of economic turmoil and market turmoil. This is because it has many characteristics that make it a “safe” investment, including its limited supply (like precious metals), its relative permanence (unlike paper assets like stocks and bonds) and its enduring utility. It has therefore held its value or even increased it during previous market downturns.

Gold’s price movements are also influenced by a variety of factors. Investors may be prompted to buy gold in order to protect themselves from falling stocks. Gold prices can be affected by the pace of inflation and investor expectations about future inflation levels. Similarly, rising rates of interest can cause people to seek refuge in government bonds rather than gold.

Gold is a popular investment for diversification, regardless of the reasons. It has historically had a lower correlation with traditional financial assets such as stocks and bond. This low correlation can help to reduce a portfolio’s overall risk exposure and potentially improve long-term returns. It’s important to weigh the potential benefits of adding gold to your portfolio against its disadvantages. Do your research before choosing a gold dealer, especially if you are buying unallocated (gold that’s not physically held by the dealer). Many dealers are unscrupulous. They use tactics such high pressure sales in order to cheat their customers.

It’s Diversifier

If you plan to invest for the long run, a part of your portfolio should consist of gold. Diversifying your portfolio with gold protects you against a fall in the value of other assets, such as stocks and bonds. Gold can also help offset a rise in inflation.

It can be emotionally rewarding to invest in gold, but it has its drawbacks. You run the risk of someone stealing your metal, or you won’t get the full market value when you sell it. You can avoid these risks by buying shares in a gold-mining company, which has the benefit of being a liquid investment and will give you diversified exposure to the metal without having to physically hold it.

A currency investment is another way to invest in Gold. This allows you to buy the commodity and sell it in the same way as a mutual fund or foreign exchange traded fund. This option provides a higher level liquidity than owning gold, and allows you to take advantage tax breaks in your country.

Regardless of which type of investment you choose, gold is an excellent hedge against economic uncertainty. When markets are volatile and geopolitical tensions are high, investors often seek out gold as a safe haven. Gold is a good option for those who wish to protect their wealth against currency depreciation.

It’s A Currency

Throughout history, gold has been used as money. Despite this, most investors still tend to view it as a commodity and not a currency. This can be problematic. The main reason for this is that gold behaves like a currency. It moves inversely to paper currencies and can mitigate risks to these assets during market or geopolitical turmoil.

For example, if the USD rises, gold prices will fall and vice versa. Additionally, gold has a negative correlation with the Euro and Yen. Gold is a great hedge against inflation. While inflation can lower the value in most currencies, gold doesn’t suffer from this trend.

Storage costs can be costly for investors who prefer to invest in gold bullion. In addition, investing in exchange-traded funds (ETFs) can provide exposure to the metal without having to worry about storage fees or other expenses.

Gold’s price can be affected by the inflows and withdrawals of ETFs, which only hold a small portion of its physical form. Gold does not produce a dividend or yield, unlike stocks and other financial instruments, so it is not ideal for traders who are looking for regular income streams. Luckily, there are other ways to gain exposure to the metal, such as by trading CFDs on gold-mining companies.

It’s a Commodity

Gold is a precious metal, which means that it has a variety of uses. It is a good hedge against currency depreciation, protects against inflation and diversifies portfolios. It has also shown a track record of providing solid returns for certain periods. It also tends to be low-correlated with stocks and bonds. Investors like it because of this, especially in times of fear and uncertainty – such as recent bank failures which have shook the markets.

Gold can be purchased as physical assets such as gold coins and bars, or via exchange-traded fund (ETF) that track gold’s price. Physical gold is a more traditional way to buy the metal and it can be stored at home or in storage facilities that range from a safe to a safety deposit box at a bank. Storing physical assets can be expensive, however. And the risk of theft is always present.

For more experienced investors who prefer a hands-off approach, they may consider options that are based on gold’s price. These include futures and ETFs which trade gold derivatives. These investments carry a greater level of risk and require more research. Before making any investments, you should consider your financial goals and current spending and investment habits as well as your level of tolerance for risk. You may want to seek personalized advice from a qualified financial advisor before making any investment decisions.