How Best to Invest in 1 gram of gold?

How Best to Invest in 1 gram of gold?

Buying gold for investment is accessible to small investors too who wish to diversify their portfolios and create a hedge against market uncertainties. In the modern markets, there are many physical and non-physical formats in which one can invest in gold. While physical form for investing in 1 gram of gold would include alternatives such as gold coins or bars from reputed mints. non-physical gold investment options are gold exchange-traded funds (ETF), stocks of gold mines, and futures and options.

Buying Physical Gold

Physical gold buying options are in the form of –

  1. Gold bars – also known as bullion, gold bars are typically sold in gram or ounce and its purity, manufacturer’s name and weight is stamped onto the bar. Investment grade gold must be at least 99.5% pure. Gold bars can be bought from dealers online from their websites. It is recommended to only buy gold bars from reputed mints like Valcambi, Pamp Suisse or Credit Suisse for instance. You can browse online and find many well-known manufacturers of gold bars. This is important because gold bars from reputed manufacturers come with unique identification codes, .999 purity markings even where they are of size for 1gram of gold and certification of authenticity that has global recognition and will fetch you the nearest rate to the trending spot prices.
  2. Gold coins – there are many mints of international repute and very well-known gold coin designs in the market. Whether it is the American Golden Eagle, Canadian Maple Leaf, Austrian Philharmonic design by Perth Mint or Lady Fortuna by Pamp Suisse – these are recognized everywhere. Some gold coins have numismatic value too, that is, they will sell at a higher premium rate. One must be very careful while purchasing gold coins as they are subject to forgeries. Search and find authentic dealers listed in the US Mint’s database eve if you are starting your gold investment newly and invest in a small quantity of 1gram of gold. Another advantage of going through them is that when you are ready to sell the gold these dealers will offer the best value against your holding.
  3. Jewelry – if they are antique pieces, then gold jewelry may have higher gold content, other than that, jewelry is not the purest form of gold. When you invest in gold jewelry, you pay a higher premium for the design, making charges and other charges levied by the jeweler. Manufacturers must alloy the gold with other metals to make the jewelry durable or to adjust its color. There is a list of Jewelers of America that one can find online and these are certified jewelers that one can trust for transparent dealings. The advantage of purchasing gold from them even if you are buying only 1gram of gold is that although you may pay a higher premium is that these dealers will give you proper invoices and certificates to attest the gold quality when you are ready to resell it.

Non-physical forms of buying gold

Non-physical options for buying gold are –

  1. Invest in gold mining stocks – you can buy stocks in companies that mine and refine gold. while their stock prices may not match the trajectory of the physical gold prices, they will mostly move in parallel streams. This is a low-risk exposure to gold investment where one doesn’t have to be concerned about holding physical gold.
  2. Gold Mutual Funds and ETFs – in this option one invests in a basket of gold-related securities instead of a single company tied to gold. Gold Funds track prices of gold and include stocks of multiple gold mines and refineries. They provide exposure to gold futures and options, which is the next best thing to investing in physical gold.
  3. Futures and options – this is a highly speculative option but if you have high risk propensity then futures and options are attractive with their high risk, high return nature. With gold futures, you commit to buy or sell gold in the future at the specified price and under the gold options contract, you make an agreement with option to buy or sell gold if it reaches a certain price by a predetermined date. You must observe the prices very closely to ensure you do not miss a chance to enact your options.
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