You can buy stocks in gold mines or pursuit companies (called explorers) to become shareholders.
In case you are interested in gold stocks, you should not put the capital for security because of the high risk better in specific values. Specifically as a newcomer to the currency markets. This speculative approach is even more for and experienced and risk-conscious investors who are good at assessing risk / reward ratios.
Often, it is unclear how much gold gold companies will get and mine in the gold mines or what the costs are. Gold mining stocks and shares therefore often fall sharply in bad news.
If you would like to invest in gold stocks, then you should buy better Gold Index Certificates (even more on that). Because of this, the risk is spread over several shares. For instance, there is the HUI index, which is considered the most important gold IRA index (also known as “Arca Gold Index”). As of January 2018, it includes a total of 16 gold shares.
Of course, HUI usually benefits most from rising gold prices. That is, when the price of gold rises, therefore does the HUI price (and vice versa). But: Once again, there can be an increased risk, because it can lead to strong cost fluctuations (they were in recent years also stronger compared to the gold price).
Gold as an expense with gold certificates and gold funds
That is another probability of gold investment. Particularly well-known here are gold certificates and outlined gold funds or ETFs (definition) , which simulate the efficiency of the gold price or the HUI index 1: 1 mentioned above. This means that if, for example, the price of gold rises by 2% in one day, then your corresponding gold certificate (or gold ETF) also rises by 2%.
Various banks provide certificates and ETFs with different titles. I do not want to mention anything (otherwise I would obtain the impression that I recommend a certain financial product to get, which I definitely usually do not). But you can simply google it or consult the lender or the broker of trust.
Note: As well as the relatively harmless certificates just mentioned, additionally, there are a great many other gold derivatives that are much riskier. Here you have to be careful as an investor! Above all, beware of leveraged derivatives (they are lever certificates , CFDs , warrants, etc.). These financial instruments can quickly accumulate high losses.
If you are interested, you should better buy less dangerous derivatives with a simpler framework (ie some gold certificates that reflect the price of gold 1: 1). Regardless, it is easy to lose track of the mass of available derivatives. Therefore, often read the conditions and circumstances of the derivative and only invest in the financial loans that you really understand.
Gold derivatives and ETFs also have one drawback that should not be left unmentioned: if the issuer will go bankrupt, the majority of the amount of money invested will become lost (even if that’s unlikely in a reputable provider). That should always be considered.
Investing money in gold: tips to complete
Gold stocks, gold ETFs and gold certificates can be quickly and cheaply bought through on-line brokers.
Besides gold, silver can be an interesting precious metal (though not as popular as gold). And of course you can also invest profit silver. As with gold, there are silver bullion, silver coins, certificates and ETFs.
Stock market and investment newbies should better keep their fingertips off the indirect purchase in gold. That is more appropriate for experienced investors who have a brief- or medium-term purchase horizon at heart . By contrast, it is worth taking into consideration the long-term investment of a little purchase as inflation security in possible occasions of crisis.