There are many benefits to investing in gold, and it can help you diversify your portfolio. Most gold mutual funds and ETFs invest in other commodities, so it’s beneficial to diversify your investments. However, you should know that gold is not a good investment for everyone. That’s why it’s a good idea to research the different types of gold funds available.
When choosing a gold investment, consider your initial capital and the return you’re looking for. You should also consider how much risk you’re willing to tolerate. Although most gold investments don’t require a large time commitment, other types, such as gold futures and stocks, require a lot of due diligence and prep work.
While physical gold is an attractive option, if you can’t afford the high cost of gold, you can invest in gold mutual funds and ETFs. These funds are more liquid and offer better diversification than individual gold stocks. Some gold funds are passively managed index funds, while others use options to track bullion prices. For example, the SPDR Gold Shares ETF owns physical gold, while VanEck Vectors Gold Miners ETF tracks the stocks of gold mining companies.
When buying physical gold, keep in mind that it needs to be safely stored. You can rent a safe deposit box or add a home safe to secure your investment. Keep in mind the cost of renting a safe deposit box, and consider insurance as well. Purchasing insurance for your gold is a good idea because it will ensure that you are not losing money in the event of theft.