Gold Investments

5 Types of Gold Investments to Consider in 2022

Featured image by Jingming Pan on Unsplash

Moving into the new year, it may be time to consider enhancing your investment strategy and diversifying your portfolio. Statistically speaking, using precious metals, buying them in diverse quantities, and going with plenty of variety is a fantastic method of diversifying your portfolio. Better, gold investments n particular acts as a great inflation hedge. Although it may not rise in the short term, it always rebounds significantly with higher returns.

Some investors like to hold it just in case a gigantic financial crash occurs and creates geopolitical uncertainty as well. But usually, it holds its value much better against the US dollar. It also offers some insulation from market volatility with the right investments. This article doesn’t seek to provide financial advice. However, we will go over a few of the unique ways you can invest in everyone’s favorite precious metal. Investing in gold can be a great advantage to anyone. So, here are five types of gold you can invest in today. 


1. Gold Certificates

One way to jump into gold investments quickly is to grab a few gold certificates. These certificates state you’re investing in a certain amount of gold, issued by a company that actually owns the gold. You don’t actually get the gold in hand, nor given the ownership of the gold. Unfortunately, gold certificates are only as good as the company backing them, so most investors might skip this option and opt for exchange traded funds instead. 

2. Gold Bars

Everybody wants some physical gold investments, right? Gold bars might conjure up the image of a stack of gold bars in a well-protected vault. But the reality is they’re usually held in much smaller quantities and in significantly more private spaces. However, they’re an amazing way to acquire a good amount of gold at a reasonable price, while also having some versatility when it comes to storage and/or selling.

You may want to start small with a one Troy ounce bar of gold or go with something a bit different like a 5-gram gold bar that you can easily buy, hold, or sell. Gold bars usually offer authentication certificates, certification, and protective measures directly into their storage cases. Gold bars can come in .999 or .9999 purities, with the difference primarily being that one is fine gold while the other is pure (only .01% of the gold contains other metals).

3. Gold Jewelry

If gold bars aren’t your speed or don’t match your interests, then consider gold jewelry investments. Gold actually makes for great jewelry. Not only is it elegant and nice, but it just meshes well with different types of jewels and designs.

In addition to that, gold does not tarnish or corrode, making it an ideal subject for basing a jewelry design. Using a strong material means the jewelry will remain intact and is not going to break as often as cheaper jewelry might. The only caveat with gold jewelry is that it is physical and must be stored properly to prevent wily folks from pilfering it from the holder losing it.

Gold jewelry can be sold at pawn shops or through brokerages and any other buying/selling techniques for physical gold. It’s a solid investment strategy should you choose to go down that route. It’s not a great long-term investment, as jewelry prices tend to not increase like other gold prices do. That said, if push comes to shove, you can always find a local gold buyer and sell it all for a good price.

4. Gold Exchange Traded Fund Investments

Exchange Traded Funds (ETF) are a versatile security that allows investors to track indices, commodities, and assets. It has the side benefit of being purchased like a typical stock. They might be used to track individual prices of various commodities or used to track a list of prices.

They also contain all kinds of different investments, with prices fluctuating throughout the day. The primary benefit of investing in a gold ETF is that you don’t have to actually invest in the physical commodity itself. If physical gold isn’t in your realm of interest, considering an ETF offers lower expenses and more liquidity than some other investment types.


5. Gold Mining Futures

Gold investments don’t stop there. In a mining futures contract, you work with a seller to buy a specific quantity of gold at a negotiated price for a time in the future. As gold prices fluctuate, so too does the contract. They need to be traded via a broker on an exchange.

However, they’re a bit on the riskier side, especially since contracts have particular end dates. Gold mining stocks might be a better option for the savvy investor who doesn’t want to take the risk with mining futures. But, for those who do, a mining future can go either way: amplifying gains or making way for potentially high losses. Are you interested in taking some risks with your money and trying out new things? If so, then bitcoin might be worth considering. Bitcoin smarter can help!