Regardless of gold’s final destination, its chemical composition is such that the precious metal cannot be used up—it is permanent. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site.

Gold has long been valued as a stable investment, retaining its worth across centuries. This reliability makes it a sought-after asset during economic uncertainties. Whether in times of market volatility, geopolitical instability, or hyperinflation, gold has historically provided a reliable refuge for investors. Larger investors seeking direct exposure to the price of gold can buy gold directly through bullion.

Bullish on Precious Metals? These Are Promising Gold Investments

This ended at the outbreak of World War I in 1914 when many countries suspended the convertibility of their currencies into gold to finance the war effort. After the war, attempts were made to resurrect the gold standard, with the U.K. Gold’s history began well before the ancient Egyptians started making jewelry and religious artifacts with it. Yet it wasn’t until around 560 B.C.E. that gold started to be used as a currency.

Buying gold directly from a dealer, either online or in person, is safer. Be sure to check each dealer’s reputation and history of customer complaints. Gold has been a popular way to store wealth for much of human history. Even though we have a wide range of investment options today, many of which offer greater flexibility and, potentially, greater overall returns, gold remains a popular choice. Yet, it’s hard to discern any—and analysts doing far more fine-grained work have concluded much the same. Still, gold’s recent performance is noteworthy because it has broken from its usual correlations.

Remember, diversification is key in any investment portfolio, and gold should be one part of a broader investment strategy. Generally, gold stocks rise and fall faster than the price of gold itself. Individual companies are also subject to problems unrelated to bullion prices—such as political factors or environmental concerns. So investing in an ETF that owns gold stocks is a higher-risk way to play, but it does offer appreciation potential—which investing in bullion does not. People who choose to invest in gold via options or futures contracts need to actively monitor their holdings so they can sell, roll over or exercise their options before they expire worthless.

Investing in Gold Companies as a Dividend-Paying Asset

Some popular choices are the American Eagle, Canadian Maple Leaf, South African Krugerrand, Vienna Philharmonic, Mexican Gold 50 Pesos, British Sovereign, Australian Kangaroo, and U.S. Some of these coins are available in multiple sizes to accommodate both large and small investors. For example, the American Eagle is minted in weights ranging from 1/10 ounce up to 1 ounce.

1. In contrast, owners of a business — such as a gold miner — can profit not only from the rising price of gold but also from the business increasing its earnings.
2. Gold stocks don’t necessarily move in concert with bullion prices, because mining companies succeed or fail based on their individual operating performance.
3. Investopedia has identified online gold dealers that have proven track records, competitive and transparent prices, clearly defined buyback policies, and more.
4. Pull up the fee tables for different companies and compare them before purchasing.
5. All this perhaps matters little to investors so much as its actual price moves.

Because you’re not allowed to hold your own physical gold in an IRA, companies charge you to store gold in their facility. Less reputable companies have been known to charge investors for gold that never existed. Do your due diligence before investing any of your retirement funds with a Gold IRA company. If you prefer to own physical gold, you can purchase it in the form of gold coins or gold bars, also known as bullion. Gold is also available from private dealers, jewelry stores, coin shops, private mints, and government mints.

Like no other commodity, gold has held the fascination of human societies since the beginning is buying gold a good investment of recorded time. Empires and kingdoms were built and destroyed over gold and mercantilism. As societies developed, gold was universally accepted as a satisfactory form of payment. In short, history has given gold a power surpassing that of any other commodity on the planet, and that power has never really disappeared.

Adjusted for inflation, the market’s annualized total return came to 8.4%. Large-cap stocks traded in the U.S. have easily outperformed those asset classes over the past four decades. From breaking news about what is happening in the stock market today, to retirement planning for tomorrow, we look forward to joining you on your journey to financial independence.

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But like gold coins, you’ll probably be paying extra for the amount of gold you’re actually getting—a premium that could be anywhere from 20% to 300%, depending on the manufacturer. You can buy gold bars from dealers, individuals or online from sites like JMBullion, the American Precious Metals Exchange (APMEX) or SD Bullion. And keep in mind that you may be on the hook for delivery fees—plus insurance—to assure the safe transport of your bullion. In the section above, we left out “digital gold” among the ways to invest in gold. These are digital certificates representing ownership of gold and are said to combine the benefits of physical ownership with digital convenience. Nor was it an accident we left aside offers of gold coins stamped with Darth Vader and Snoopy icons.

Tax-Aware Strategies for Your Wealth Plan

For the average gold investor, mutual funds and ETFs are generally the easiest and safest way to invest in gold. One alternative to a direct purchase of gold bullion is a gold-based exchange-traded fund (ETF). Each share of this specialized security represents a fixed amount of gold, such as one-tenth of an ounce. You can buy gold coins through dealers, pawnshops and individual sellers that you trust. If you choose to buy your gold coins online, make sure to go through a dealer listed in the U.S.