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ways to profit from gold

Gold May Soar With Our Current Volatile Market

You may be surprised to know that there are a number of ways that you can profit with gold. With inflation and how volatile are markets have been, the year 2022 may be another history-making year for the price of gold. In fact, there are five common ways that you can get started investing or speculating in gold. After this article make sure to call 844-790-9191 for more information on how you can preserve your wealth and unlock your financial potential. Here’s a look at the five ways that you can gain a profit with gold today. 

1). Buy Gold Bullion 

Perhaps the most traditional way that you can gain a profit with gold is to purchase physical gold. You can purchase gold coins, gold bullion, or gold collector coins. If you are looking to simply invest in gold, getting gold bullion or gold coins is going to be your best option. Gold collector coins tend to charge a premium over the spot price because they are particularly rare. However, you can do just fine getting a current year minted gold coin. 

Here are some of the most popular physical gold products to consider:

2). Buy Gold Mining Stocks 

If you are looking for a leveraged play on the price of gold, then you will want to consider gold mining stocks. These are stocks in companies that are engaged in the exploration and mining of gold. Within the gold mining stock world, there are two categories – junior gold mining stocks and conventional gold mining stocks. 

  • Conventional gold mining stocks – These are mining companies that already have a mining operation and they are pulling gold out of the ground. 
  • Junior gold mining stocks – These are companies that are currently exploring gold. 

Conventional mining stocks tend to be more stable because they already have gold in production. Junior gold mining stocks are more volatile since you won’t know how much gold they will be producing in the future. 

3). Buy Gold ETFs 

If you don’t want to purchase physical gold, then you can simply purchase gold exchange-traded funds or ETFs. These funds track gold’s value in the futures market or the fund is backed by physical gold. Here is a look at some of the most popular gold ETFs:

SPRD Gold Trust (GLD) – This is a gold ETF that tracks the future’s price of gold and it is not totally correlated with the spot price of gold.

Aberdeen Shares Physical Gold Shares ETF (SGOL) – This ETF is backed by physical gold and more accurately reflects the spot price of gold. 

4). Buy Gold ETF Options or Gold Futures 

If you are willing to take on some more risk, then you can purchase gold ETF options or futures contracts on gold. Be aware that options and futures have a time component. That means that the price of the option or contract must be higher than the underlying price for it to have any value. 

  • Gold ETF Options – One gold ETF options contract is equal to 100 shares of the underlying ETF. If you hold the options contract to expiration – and the price of the ETF exceeds the strike price of the contract – then you will be obligated to purchase 100 shares of the ETF at the strike price. 
  • Gold Futures – One gold futures contract is valued at 100 ounces of the spot price of gold. If you hold the contract to expiration – at the price of gold exceeds the strike price on the contract – then you will be obligated to pay for and receive delivery for 100 ounces of gold at the contract’s strike price. 

5). Forex Investing 

If you want to speculate on the short-term price movements of gold, then you can use a forex account to trade gold against several different currencies. Forex trading allows leverage of up to 100 to 1. That means that a 1% move against you can liquidate your position. Therefore, you should use extreme caution when using forex to speculate on the price of gold. 

There is More Than One Way to Profit with Gold 

As you can see, there are a number of ways that you can potentially profit from gold. For long-term investors, physical gold and ETFs are the best choices. For those looking to speculate on shorter-term price movements, options, futures, and forex will be a more viable choice. Carefully consider the risk of each investment and consult with an executive from Allegiance Gold on how you can unlock your profit potential in the year 2022. Make sure to ask about receiving your FREE gold IRA guide!

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