The most standardized way to own physical gold directly is through the acquisition of ingots. Buyers should research reputable distributors and check the purity, shape, size and weight of the bars before purchasing them. In reality, there are only three ways to store your gold: keeping it at home, using a bank's safe, or paying an outside storage company. For those looking for more specialized advice, a Gold IRA expert can provide guidance on the best ways to invest in gold. You can buy physical gold in the form of jewelry, ingots and coins; buy shares in a gold mining company or other gold-related investment; or buy something whose value derives from gold.
Each method has its advantages and disadvantages. This can make it overwhelming for beginning investors to know how best to expose themselves to this precious metal. Three of the largest ETFs include SPDR Gold Shares (GLD), iShares Gold Trust (IAU) and the Aberdeen Standard Physical Gold Shares (SGOL) ETF. The dollar and the desire of investors to keep gold as a hedge against inflation or currency devaluation help boost its price.
As a government equivalent currency, some banks and investment companies continue to issue gold certificates that grant the holder ownership of part of their gold holdings. This is especially easy to see if you look at the commodity exchange market (COMEX), where there are sometimes more than 500 paper claims for every ounce of physical gold normally available on COMEX. Gold futures are a good way to speculate on the rise (or fall) in the price of gold, and you could even accept the physical delivery of gold if you wish, although physical delivery is not what motivates speculators. Options contracts also allow the holder to buy or sell shares in a gold ETF or a gold mining stock at a specific price and date.
Claudio created several years ago a precious metals company called Global Gold that focused on trading and storing physical gold according to Swiss legislation. They have always had a currency, even in times of war, that could be exchanged for physical gold. In addition to that, it is not allowed to request physical delivery and, quite often, they have cash settlement clauses, meaning that the bank can pay you in cash instead of in physical metals in the event of a severe currency crisis or war. After six years in business, he resigned from the company to promote Switzerland as the best place to store physical money.
This helps investors seeking the safety of gold and protection against inflation to benefit from an investment in gold with more liquidity than a physical investment in gold. Now that the world's currencies are not backed by government-controlled gold, the paper market for gold has grown tremendously as people seek to buy money backed by a physical product. So, if you believe in gold and want to put it aside as insurance or save money over a long period of time, make sure it's physical and that it belongs to you.