The Absolute Best Way to Own Gold Today

Gold ownership, in the context of investing, refers to holding physical gold or financial instruments that represent a claim on gold. Investors may own gold for various reasons, such as diversifying their portfolio, hedging against inflation, or seeking a safe haven during times of economic and geopolitical uncertainty. These reasons are glaringly obvious in today’s market environment or at least they should be.

Gold is often viewed as a hedge against inflation, as its value tends to appreciate when the purchasing power of currencies declines. During periods of high inflation, gold may help preserve wealth. Gold is a highly liquid asset, meaning it can be easily bought and sold. During times of economic, political, or market uncertainty, investors often flock to gold as a safe haven asset. Gold tends to retain its value during such periods, providing a sense of financial security.

Some of the most common ways investors own gold are in physical form, gold ETFs, gold mining stocks, gold futures and options, and gold mutual funds. It is up for debate which way is the best. When considering how to own gold, privacy is very important when we consider where our financial system is headed and how the government may look to control and monitor it. It could be argued that privacy is the most important benefit of owning gold.

Gold can be owned in physical form

Bullion means products based on weight and purity. Gold bullion bars are the most traditional form of gold ownership. Bullion bars come in various sizes. Many investors prefer bullion gold coins due to their legal tender aspect and easy portability. A government-minted coin also has the reputation of being of high quality. Some investors are attracted to older, rare gold coins for their historical significance and numismatic value. Gold rounds are produced by private mints but typically lack the quality of a government-minted coin. While not as common for investment purposes, some investors choose to buy gold jewelry as a way to own physical gold.

Gold ETFs are a convenient way to invest in gold

A gold exchange-traded fund (ETF) is a type of investment vehicle that tracks the price of gold. It is traded on stock exchanges, much like regular stocks, and can be bought and sold throughout the trading day. Gold ETFs aim to provide investors with exposure to gold prices without the need to physically own, store, or insure the metal.

There are many gold mining shares to choose from

When a person invests in gold mining shares, they are buying ownership stakes in companies that are involved in the exploration, extraction, and production of gold. These companies can range from large, established gold miners with global operations to smaller, exploratory companies searching for new gold deposits. Investors considering gold mining shares should conduct thorough research on the companies, their management teams, financial health, and growth prospects.

Futures and options are another way to own gold

When someone owns gold through futures and options, they are investing in derivative contracts that derive their value from the underlying price of gold. These financial instruments allow investors to speculate on or hedge against future gold price movements without physically owning the metal. A gold futures contract is an agreement to buy or sell a specified amount of gold at a predetermined price on a future date. The contract is standardized and traded on a futures exchange. A gold option is a contract that gives the holder the right, but not the obligation, to buy (call option) or sell (put option) a specified amount of gold at a predetermined price (strike price) on or before a specific date (expiration date).

Investment platforms typically offer gold mutual funds

Investing in a gold mutual fund means buying shares in a professionally managed investment vehicle that pools money from multiple investors to purchase a portfolio of gold-related assets. These assets may include gold mining stocks, physical gold bullion, or other gold-backed financial instruments. Gold mutual funds offer investors a way to gain exposure to the gold market without the need to directly purchase, store, or insure physical gold. The fund manager is responsible for making investment decisions, such as selecting which gold-related assets to buy, sell, or hold in the fund’s portfolio.

So there are a few different ways to own gold. Gold can be owned

  • in physical form
  • through gold ETFs
  • mining shares
  • futures and options
  • and mutual funds

But which is the best way? That comes down to the reasons you want to own the yellow metal. Do you desire to own gold because you think the price is going to go up? Do you want to own it because you don’t feel your money is safe in the bank? Do you want to own gold because you feel the stock and bond market are a ticking time bomb? Do you want to own it because the government is headed towards a system of financial control and monitoring leaving you with no financial privacy? Do you want to own gold because you think our dollar will dwindle due to currency printing and government deficit spending and debt? These questions have never been more important for investors.

Let’s see if we can provide some simple clarity here. Let’s say you want to own it for convenience and price, then “paper gold” will do. Paper gold can be referred to as gold ETFs, gold mining shares, and gold futures and options. Some of these paper products are riskier than others. Paper gold products in our opinion all revolve around the speculation of a higher or lower gold price and these offer the easiest most convenient way to do that.

In our opinion, the ownership and diversification aspect of gold should not revolve around price or convenience. Gold ownership should be based on control, privacy, and having purchasing power outside of the banking system. Wealth preservation and diversification with gold should be done in physical form for those with the above concerns and reasons for doing so. Gold bullion bars, gold bullion coins, gold rounds, and gold numismatic coins are the best ways to own gold in this market environment. This is our opinion and not financial advice. If you want to own gold because you believe the financial system is drowning in debt and our dollar is sick and dwindling in value, why would you want your gold investments tied to a market or banking system like that? Not to mention under the watch of an overreaching government that is eventually headed towards a digital system.

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Midas Gold Group