The Ways to Invest in Gold and Silver
$GLD, $SLV, $ABX, $WPM, $EXCFF
The experts say that owning Gold is a secure safe-have investment for protection against inflation or other economic uncertainties in anyone’s financial plans.
The Big Q: What does one do to own a piece of the precious Yellow metal?
The Big A: There are many ways to take part in the Gold Rush for beginners and experienced investors alike.
Some approaches are riskier than others and depend on risk tolerance associated with each method.
Below are ways to invest in Gold and Silver, they are as follows:
- Physical Gold: Investors can purchase Gold coins or Gold bars, storing them for security in safe-deposit boxes, concealed locations at home, or in storage facilities offered by companies worldwide. Authorized dealers of coins can be found on the US Mint’s website. Commissions or premiums apply on purchases. Coins are often based on collector value prices. Gold bars, based on market value, are sold from an ounce or less to several hundred ounces.
- Gold mining stocks: Some investors buy Gold miners stocks as a way to help diversify a financial portfolio. Owning stock in companies that mine and sell Gold is not the same as having the actual Gold in hand because share pricing is subject to operating costs of the company. Sometimes the investments outperform physical Gold prices when Gold rises significantly the data shows. Barick Gold (NYSE:ABX) is the worlds biggest Gold miner.
- Gold ETFs (exchange-traded funds): Gold ETFs are similar to mutual funds, holding many Gold stocks instead of 1, so there’s a wide range of investments in each fund. ETFs are available for bullion, mining, and physical gold companies. Management fees are less expensive than with mutual funds, but trading fees apply. The funds are purchased and sold like stocks with prices changing day daily. Gold SPDR (GLD) is my prime reference
- Gold mutual funds: Unlike ETFs, these funds are bought and sold through mutual fund companies or brokerage firms. Annual management fees for mutual funds are usually more expensive than fees for ETFs, but Gold mutual funds have more hands-on management as fund managers buy and sell Gold stocks to get the best possible returns for investors. Vanguard offer one.
- Gold Royalty & Streaming companies: Royalty companies, sometimes called streaming companies, serve a special role in the precious metals mining industry. Developing a mine property to start producing Gold or other precious metal is an expensive, time-consuming process. Infrastructure needs to be built out, permits applied for, laborers hired and more. A royalty company serves as a specialized financier that helps fund exploration and production projects for cash-strapped mining companies. In return, it receives royalties on whatever the project produces, or rights to a “stream,” an agreed-upon amount of Gold, Silver or other precious metal. Some experts say this is the most efficient way to play the precious metals market and presents the least risk. The dominant players in the industry include: Wheaton Precious Metals (NYSE:WPM), Franco Nevada (NYSE:FNV), Royal Gold (NASDAQ:RGLD), Sandstorm Gold (NYSEArca:SAND), and a prominent up and comer is Metalla Royalty & Streaming(OTCMKT:EXCFF)
- Gold options: For investors with more trading experience and willingness to take risks, gold options allow investors to consider buying gold before an expiration date, the Option Guide explains. Traders buy call options if they believe the price of Gold will rise. Investors buy put options when they think the prices will fall.
- Gold futures (paper Gold): While options give traders the choice of buying or selling gold at a certain time, futures must be bought or sold by the investor at a specific date. However, futures holders can close their position before the expiration date. Futures offer leverage and flexibility, but also involve substantial risks.
|HeffX-LTN Analysis for GLD:||Overall||Short||Intermediate||Long|
|Very Bullish (0.52)||Very Bullish (0.50)||Very Bullish (0.56)||Very Bullish (0.50)|
|HeffX-LTN Analysis for SLV:||Overall||Short||Intermediate||Long|
|Bullish (0.40)||Very Bullish (0.56)||Bullish (0.29)||Bullish (0.35)|
|HeffX-LTN Analysis for ABX:||Overall||Short||Intermediate||Long|
|Bullish (0.28)||Bullish (0.36)||Bullish (0.33)||Neutral (0.15)|
|HeffX-LTN Analysis for WPM:||Overall||Short||Intermediate||Long|
|Bullish (0.31)||Bullish (0.37)||Neutral (0.23)||Bullish (0.33)|
|HeffX-LTN Analysis for EXCFF:||Overall||Short||Intermediate||Long|
|Bullish (0.41)||Bullish (0.33)||Very Bullish (0.54)||Bullish (0.35)|