How to invest in gold the right way?
Market participants are often bothered by the question of what form of gold investment to choose. After reading employee reviews on Teletrade, let’s take a closer look at the four ways to buy gold.
Invest in gold
Buying gold bars does not seem to be the most profitable option for investing in this metal. The price of the bar includes VAT, which will not be refunded on sale. This investment method has gained popularity since the late 90’s when people were looking for a way to insure their savings and lost confidence in the banking system.
Bars weighing between 20 and 100 grams were simply stored in home safes. Remember that the ingot should be stored carefully, like a scratch on it, and the bank will reduce its value (or not accept it at all). If you want to invest in gold when buying gold bars, it’s best to wait and carefully consider your other options.
Invest in gold coins
It is the most profitable investment in gold. But ordinary gold coins should not be confused with bullion coins. Investment coins are distinguished by an interesting design, high gold quality and the complexity of minting. These coins are very liquid and can be easily bought or sold. Many banks like to buy gold coins.
However, there are many disadvantages to investing in gold coins. For example, most banks sell more gold coins than they buy. In addition, banks often invest their fees in the final cost.
Impersonal metal accounts
This method involves depositing an amount in gold or its equivalent in gold into your account. Banks offer low interest for these deposits (1.5-2% per annum). This method is widespread in the West. Depositors and banks benefit from this. However, be careful when choosing a financial institution. Invest in big, well capitalized banks that have a solid name and backing. Ignore the high interest rates.
Stock exchange trading
You can buy shares in gold mining companies or invest in gold derivatives (options and futures). This method is not suitable for beginners, but is suitable for experienced financiers. If you are not good at analysis, general bank management funds, which are also actively involved in such activities, will be helpful.