Buying Gold May Be Important In Preserving Wealth
For thousands of years, gold has been used as the ultimate store of wealth. For this and many other reasons, you will want to consider adding gold to your portfolio. Since there are a number of ways that you can invest in gold, you should explore all the options available for you. From owning physical gold or rolling over a 401K into a gold IRA, there are multiple scenarios that can help benefit your financial portfolio. For more on what your portfolio needs, Allegiance Gold can help break down all the different possibilities. Call an Allegiance Gold executive at 844-790-9191 to receive your FREE Gold IRA Guide that describes how gold and other precious metals can help your wealth. Here’s a look at five ways you can add gold to your portfolio.
1). Physical Gold
Perhaps the most straightforward way to own gold is to purchase physical gold bullion. Today, you can purchase gold in many ways from exclusive gold coins that are IRA-approved, to storing gold in a depository. Additionally, you have the option to purchase gold in bars as well as in various weights.
How to buy physical gold
You can purchase gold by going to your local gold dealer or pawn shop. You can also purchase gold from a private party. Another option is to purchase gold from an online gold bullion dealer, such as Allegiance Gold. When you purchase gold, you have the option to hold it yourself or to have it stored by a third party. Be aware that if you have your gold stored by a third party that you will have to pay an annual fee.
Pro of physical gold
The best reason to purchase physical gold is that you can hold your asset privately and move it outside of the financial system.
Con of physical gold
The downside to purchasing physical gold is that the asset can be lost or stolen.
2). Gold ETFs
Gold ETFs or exchange-traded funds have become a popular way for people to invest in gold. That’s because there is no need to actually purchase the physical asset. Buying a gold ETF is as easy as making a stock purchase through an online broker. Today, there are a number of gold ETFs available that track the futures or spot price of the precious metal.
How to buy gold ETFs
To purchase a gold ETF, go to your online broker or call your broker and purchase one of the available gold ETFs. Two of the most popular gold ETFs include the SPDR Gold Shares (GLD) and the iShares Gold Trust (IAU). These ETFs do not actually hold gold. Rather they hold gold futures contracts.
Pro of gold ETFs
Gold ETFs are one of the easiest and fastest ways to invest in the price of gold.
Con of gold ETFs
With gold ETFs, you don’t actually hold the physical asset.
3). Gold Mining Stocks
Another way to effectively buy gold is to buy shares in gold mining companies. This is because gold mining companies will own gold through their mining operations. Bear in mind that gold miners are essentially a leveraged play on the price of gold and can be more volatile.
How to buy gold mining stocks
You can purchase gold mining stocks through a broker. Some of the most popular gold mining stocks include Barrick Gold Corp (GOLD) and Newmont Mining (NEM).
Pro of gold mining stocks
During bull markets, gold mining stocks tend to outperform gold.
Con of gold mining stocks
Gold mining stocks are also more volatile than gold.
4). Gold Futures
If you are looking for major leverage when investing in gold, then you will want to consider gold futures. A gold futures contract gives you the right to purchase gold in 100 troy ounce lots. While some people use gold futures contracts to speculate on the price of gold, others use it to take physical delivery of the precious metal.
How to buy gold futures
Open a brokerage account that allows for future trading and make a purchase in a gold futures contract.
Pro of gold futures
You have an incredible amount of leverage.
Con of gold futures
Gold futures are extremely risky and you could lose more than you invest.
5). Gold IRA
If you are looking for a tax-advantaged way to own gold, then a gold IRA is the choice for you. With a Gold IRA, you can purchase and hold gold and your taxes are different until retirement age.
How to buy gold IRA
Open a gold IRA and purchase gold bullion which is on the IRS-approved list. Then have the gold held by an approved custodian.
Pro of gold IRA
Your capital gains taxes are deferred until retirement.
Con of gold IRA
You can not withdraw your gold until you reach the retirement age of 59 ½.
Adding Gold to Your Portfolio
There are a number of ways to add gold to your portfolio. The best way to find out all the different options for you to invest in gold is to call the executives at Allegiance Gold at 844-790-9191. Our executives stay up to date with world news and how it impacts a financial portfolio. When you speak to our executives, make sure to inquire about our FREE Gold IRA Guide. This guide will not only explain why gold is important for your financial portfolio but will also discuss some of the worldly events that directly affect the price of gold. Call or fill out the form below and receive your guide today!