How to invest in gold? The different possibilities

Physical gold

We advise against this way of investing. Although in the case of "investment gold" (ingots and coins with a purity of 99.5 and 80% respectively) it does not support VAT, the margin left by its seller will mean that when buying it, he will have to pay more than its fair price. Also, when you sell it, they will pay you for slightly less, so you will need it to go up at least 5% to start seeing a profit. You will also need a safe place to keep it gold ira companies reviews.

Gold ETF (exchange-traded fund)

This form of investment avoids the problem of safekeeping and obtaining a "fair" price. However, most of them are synthetic, that is, they do not buy gold but instead enter into derivative contracts, thereby multiplying their risk. Only those who invest directly in physical gold seem acceptable to us and their evolution will be "limited" to that of the price of gold.

Gold Mine Shares

The shares of large mining companies such as Barrick Gold, AngloGold or Harmony are listed on the NYSE (New York Stock Exchange). There are also other companies active in Canada, South Africa, Australia ... As they are shares of gold extractive companies, the company's own risk is assumed, for example a strike that paralyzes the extraction of gold or the breakage of one of its settling basins that carries significant fines. Of course, they experience the leverage effect that their price has on their margins and profits. That is, they tend to amplify the variations experienced by the yellow metal in their prices.

Gold Mine Funds

The funds that invest in gold mines allow diversification in these companies from different countries from affordable minimums. It is therefore a way of betting on the leverage of gold and at the same time reducing the risk involved in investing in a specific action.

For whom? In what proportion?

Investing in gold can be interesting but, given its risk, as long as it is viewed with a diversification perspective that complements a long-term investment (such as that of our global portfolios) and dedicating only a small weight to it (e.g. no more 5%). Good in physical gold ETFs or a gold mine fund if you like a little more spice.