gold investment

Gold Investment Options and Your Retirement

Featured image by Aaron Munoz on Unsplash

With all the talk about cryptocurrencies in the media, it’s time to remember the king of all currencies: gold. This precious metal has been with humanity for thousands of years. It’s going to take a lot to remove it from its throne. So let’s explore the possibilities around gold investment options.


The dollar has tried to knock gold investing off its throne. Other currencies have tried as well, but they have all failed. That’s why gold is one of the best investments for you. On average, the centennial interest on this precious metal is around 300 percent.

This means that over the course of a hundred years, you’re going to get your initial investment times three. However, when you put it into an annual yield, that number is around three percent, except in times of crisis. When a crisis happens, gold is the only thing that skyrockets.

Why is that so? Many people have asked the same question, and the answer is relatively simple. When everything else fails, as when the market crashes or inflation occurs, the only thing that’s stable is gold. It’s a finite resource, and you can’t produce more of it.

The dollar can be printed. The market can be manipulated. But there will always be a finite amount of precious metals. So pin that thought. Now, we’re going to go deeper into the world of gold investment options.

Buying Precious Metal Stocks

A lot of people think that coins, bullion, and jewelry are the top options when it comes to dealing with precious metals. But that’s simply not the case. When you deal with the three examples we just mentioned, there are a lot of complicated steps you need to go through. Follow this link for more information about that:

First, you need to find a brokerage and choose a broker. Then you need to settle on a piece and consult with your broker about its purity. And then the metal gets delivered to your door. Then you need to go and store that metal in a secure place. That’s a lot of hassle over an ounce.

Simpler Gold Investment Options

However, purchasing gold stocks is a much simpler option. You just open your phone and download an app. Then you connect your account and enter your personal details. You’ll be able to purchase shares in less than a minute. That’s far less complicated than dealing with brokers and finding secure locations where you can store your gold.

One of the most important things about this type of investing is that the price of the stocks and the price of gold are closely connected. But there are also a few other factors. These include the costs of digging and the profitability of gold at the moment.

If you choose individual gold-related companies to invest in, that has almost the same risk as investing in other kinds of companies. Besides, putting all of your money behind a single company is never a good idea, because there can be a lot of volatility. For example, just take a look at the recent rise, then fall, then rise again of bitcoin along with the current bull market around cryptocurrencies. This is why it’s always better to have a diversified portfolio. 

Exchange-Traded and Mutual Funds

Most people don’t know that some mutual funds and exchange-traded funds will give you long-term stability if you choose to trust them with your money. They have a lot more diversity and liquidity than just buying gold. This factor could help your in your metal-res gold individual retirement account creation. You should also know that these funds come in various forms.

Here are two examples:

  • One company invests in the real thing, and the price of its stock always reflects the price of single bullion. This makes the option of buying a fraction of bullion possible. Since you can’t cut a bar into hundreds of pieces, this way of doing things is much better.
  • Another company might choose to invest in a number of different firms that process and mine gold. Talking to a professional investor will give you a general idea of what happens behind the curtains. The main goal of these funds is to be better than the index funds that are being managed passively.

The returns these past couple of years have been outstanding, but the expense percentages have been rising as a result. It’s important to note that you’re buying a piece of paper that’s backed by a gold bar. This is virtually the same as the money that people used a hundred years ago.

Moreover, these stocks may not precisely follow the price of the precious metal in the future. They might or might not perform as well as having a physical coin or bullion at your disposal. 


Is Gold a Good Investment?

No one knows what is going to happen tomorrow. For example, no one expected a pandemic in 2020, and yet it happened. What’s more, it brought the world to a screeching halt. If you’re someone who thinks that something similar can happen in the coming decade, then gold would be a great place to put your money.

During times of uncertainty, the only thing that remains stable and strong is gold. It has kept its value exceptionally well throughout history. However, it can be just as volatile as the stock market if you’re only investing for the short run. So just keep in mind that there are plenty of things to invest in.

These range from bullion, coins, jewelry, mutual funds, exchange-traded funds, contracts, and company stocks. With the current state of things, most experts advise putting around 10 percent of your entire portfolio into gold.


You should distribute the other percentage into real estate, bonds, stocks, and even cryptocurrencies. But remember that whatever you invest in carries a small amount of risk. There are no exceptions. A market is a place where time plays a major factor. Hold your investments and cash out when you hand your business off to the next generation and retire.