How Can I Buy Gold On The Stock Market?
Gold is one of the best investments you can make. It is a hedge against inflation, stabilizes portfolios, goes up when the stock market goes down, is highly liquid, and you don’t need much knowledge or experience to get started. When it’s time to make the investment, there are three ways you can do it. First, you can purchase physical gold bullion, you can buy gold funds, buy stock in a gold mining company, and you can buy futures options. Which course you take depends on how experienced you are as an investor. Keep reading to learn more about how to buy gold on the stock market and other ways to get started investing in gold.
Buying Gold Funds
For more experienced investors who are looking to get entry into the gold market without the hassle of transaction fees, the cost of storage, and insurance should consider buying gold funds. It is one way you can buy gold on the stock market.
According to Investopedia, SPDR Gold Shares (GLD), for example, is one of the oldest ETFs of its kind, initiated in 2004. Shares trade on the New York Stock Exchange and can be bought or sold at any time throughout the trading day, just like stock. Each share of the ETF represents one-tenth of an ounce of gold.1 For example, if gold is trading near $1,300 an ounce, the gold ETF will trade for approximately $130 per share. GLD invests solely in bullion, giving investors direct exposure to the metal’s price moves. Other funds invest both in bullion and in shares of publicly-traded companies in the business of gold mining, refining, or production.
Investing in Gold Mining Stock
Just like buying stock in any other company, you can buy stock in gold mining companies. It isn’t the same as buying physical gold, however, you do have control over what companies you invest in. More experienced investors may want to do research into each gold mining company to see which company’s values and practices align with theirs. Either way, it is a highly liquid asset that you can sell at any time, and it can get your feet wet in the gold game on the stock market.
Buying gold funds can be risky, and investors who are looking to minimize their risk might be more interested in futures options. Futures options are another way you can buy gold and this method is usually best suited for more experienced investors.
Also according to Investopedia, futures options are available in the U.S. through the Chicago Mercantile Exchange, put and call options on gold futures can be bought and sold through a futures broker. Options on SPDR Gold Shares ETF are also available to investors and can be traded in a standard brokerage account that has received approval for options trading. Meanwhile, some traders buy and sell gold futures contracts—which trade on CME under the symbol GC—to speculate on short-term moves higher or lower in the yellow metal.
Other Ways to Invest in Gold
If you are an inexperienced investor who is looking to get into the gold market, there are other ways to invest in gold. Buying gold on the stock market isn’t the only way, and there are a few simple ways you can get started.
- Purchasing Gold Bullion. You can purchase gold bullion coins or bars through a dealer, such as Priority Gold. It requires little-to-no investing knowledge or experience, without the hassle of dealing with the stock market. You can store them with your precious metals dealer, or keep them in a safe place.
- Gold IRA. You can open a Gold Roth IRA, or rollover your existing IRA, to invest in gold. A gold IRA is a self-directed individual retirement account that invests in physical gold or other precious metals such as silver. You can enjoy many tax benefits of gold, as well as a hedge against inflation.
About Priority Gold
Depending on how experienced an investor you are, you might choose to purchase gold on the stock market. However, if you are not experienced, we can help you get started on the right path. If you are ready to invest in gold to protect your savings and secure your future, we can help. Priority Gold is one of the most trusted precious metals dealers in the United States with BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
We specialize in providing precious metals investment services with Security, Liability, and Great Convenience for customers. Our team is committed to helping to streamline their precious metals purchases at a fair price, selecting the right precious metals portfolios, and meeting their important financial objectives. We serve you with our proven and easy system to make it as simple as possible for even the newest investors.
We offer Free Storage for qualifying Gold & Silver IRA accounts, a fast & easy gold buying process, and smooth IRA Transfer. Priority Gold guarantees the highest standards of customer service, which comes with honesty, professional conduct, and the Ethical Code of Business. Whether you are ready to start investing or have questions about the gold buying process, we are here to help you.
For more information, visit us at prioritygold.com