What Are The Best Gold Investment Strategies?

5 Best Gold Investment Strategies For The Best Return

Share Tweet Share

Gold can be one of the best investment choices during times of instability. With the fallout from the COVID-19 pandemic, overvalued stocks, and rising inflation, it may be time to consider adding gold to your investment portfolio. Over the past few years, with our education, many clients have seen the value of adding gold to a financial portfolio. For further education on the importance of gold, make sure to contact our executive team at Allegiance Gold today, after you read this article. Here’s a look at the top 5 gold investment strategies as well as their pros and cons. 

1). Gold in Your Retirement Account – Gold IRA 

One of the smartest ways to protect your future is to add gold to your retirement account. You can open what is known as a gold IRA account. With a gold IRA account, you can put pre-tax money towards the purchase of qualifying gold bars or coins. This allows you to hold gold in your retirement account and protect your purchasing power. 

Pro

A gold IRA allows you to write off your contributions. Therefore, you are not only protecting your wealth, but you are also lowering your taxes. 

Con 

As an IRA account, you will not be able to access your gold until you are 59 ½. Therefore, if you should be committed to keeping that investment in your gold IRA for the long term. 

2). Dollar Cost Averaging into the Gold ETF

If you are looking for the easiest way to invest in gold, then you will want to buy a gold ETF. A gold ETF or exchange-traded fund seeks to match the performance of the price of gold. The most popular gold ETF is the SPDR Gold Trust ETF (GLD). A great strategy is to simply dollar cost average into your position. When you want to sell off your position, you can do so in seconds. 

Pro

This is the easiest and fastest way that you can invest or speculate on the price of gold. You don’t have to worry about storing any precious metals. 

Con 

When you purchase a gold ETF, you don’t actually own the gold. Buying a gold ETF is an indirect way to invest in precious metals. 

3). Purchasing and Storing Physical Gold

The most direct way to own gold is to purchase and store the physical gold bullion. You can purchase gold at a precious metals dealer or at your local pawn shop. You can also make a private purchase of gold and store it yourself. 

Pro

Purchasing gold bullion is the most direct way to own gold. During times of serious economic upheaval, owning the physical precious metal can lead to the assured way of holding on to your purchasing power. 

Con 

You have to either pay to have your gold stored by a third party or you will have to take responsibility for holding your own gold. 

4). Buying Gold Mining Stocks 

If you are looking for a leveraged play on gold, then you will want to consider purchasing gold mining stocks. During bull markets, gold mining stocks will give you a higher rate of return than simply investing in gold. 

Pro

With gold mining stocks, you can experience outsized returns in your investment. In some cases, you can double or triple your returns versus just owning gold. 

Con 

Leverage works both ways. If there is a bear market in gold. You can see your investment in gold mining stocks go down at a faster rate. 

5). Leverage Your Bet with Gold EFT Options

If you feel that you can time the market, then you may want to consider purchasing gold ETF options. Options give you the right by not the obligation to purchase 100 shares of a gold ETF. With gold ETF options, your potential profits are unlimited. 

Pro

You can make your largest possible gain by purchasing the right gold ETF options at the right time. In some cases, you can make a 1,000% return in a matter of days. 

Con 

Gold options can expire worthlessly. Therefore, if you are not careful, you can potentially lose your entire investment. 

Getting Started with Gold Investing

As you can see, there are a number of gold investing strategies that you can employ. If you are just getting started, then opening a gold IRA or simply purchasing physical gold may be your best choices. In the event that you are still not sure about investing in gold or silver, or adding precious metals to your financial portfolio – the Allegiance Gold team can make sure you are well-educated on preserving your wealth. With the year 2022 approaching, make sure you receive your FREE 2022 Survival Retirement Guide today.  Call 844-790-9191 to learn more!