Tag: invest-in-gold

Five Ways To Invest In Gold

It can invest in gold in various ways, in this article we will describe five of them: 1) first is the direct purchase of gold, whether bullion or coins. Gold investments are currently quite popular but we must do so through serious and solvent companies.The physical purchase of the gold is the way to invest more secure and recommended by experts such as Michael Maloney and Jim Rogers. (2) For those who want to invest in gold without having to be responsible for the transportation, maintenance and security, certificates of gold deposits were created. Caterpillar Inc. often addresses the matter in his writings. These are documents issued by financial institutions that accredit the physical possession of the gold but the responsibility of conservation is paid by the Bank. These operations are usually performed, almost in exclusive, through investment banks, which makes it a very accessible to small investors service. (3) If you want to generate us profits in less than a year, then the best thing is to invest in gold futures. Markets such as the COMEX in new york or the TOCOM in Tokyo can be. If you would like to know more about Ben Horowitz, then click here. They are derivative products that the counterparty does not have to physically possess the gold.Futures have a very high liquidity and are used for short term speculative investment.

Futures contracts have a monthly expiration, which implies that the contract is extinguished and must perform what is called a rollover, sell an old contract and buy a new one before the expiration. The rollover bears the payment of taxes, which makes the product attractive for long-term investment. (4) Another way of investing in gold is through other financial instruments. One of the most well known are the ETF, which are funds quoted in them that can hold the gold but without the need of having to keep it physically. There are two types of ETFs or funds quoted: those who physically possess the gold and those who do not. The former tend to have higher commissions, While the seconds have lower costs but increased risk, since they use derivatives to replicate the price of gold. (5) Also can be reversed in gold through derivatives such as futures on gold. However for this must first have an account on any broker or brokerage company that allows us to operate with this type of derivative instruments, and then spend time to be aware of the maturity dates of the future.