Gold Stocks List

Read on so you know the right steps to take when researching and investing in the world's favorite shiny yellow metal and how to buy gold in stock market.

9 Ways to Invest in Gold 

Investors have turned to gold throughout history as a haven asset during economic turmoil. Investors value gold for its use in electronics and jewelry, which adds layer of versatility. But before diving into buying and investing in top or physical gold stocks, make sure you understand what these investments are.

Gold Bullion

One approach is to purchase gold bullion, or physical gold. Owning gold has long been a popular strategy to protect wealth in times of turmoil. It's also the most cost-efficient way to invest in gold. Bullion is a durable commodity that you can also trade. When you buy gold bullion, you typically buy a piece of metal minted or cast into a certain size and weight. Bullion is often traded by the ounce, gram or kilogram, with a "troy ounce" being the most common denomination used by dealers. The purity of gold bullion is measured by karats, with 24 karats being pure gold. Investors typically buy gold bullion for long-term investment, which generally holds value over time and appreciates as other assets decline.

Gold Coins

Gold coins have been used as payment for thousands of years, though few governments mint them today. Unlike bullion, coins don't need massive storage spaces; their small size makes them more liquid. They also carry a collectible value. When looking for gold coins, consider coin mint year, condition and grade, and rarity or collectability. Buying from reputable dealers will help ensure the coin is authentic and properly graded. By doing your research, you can protect yourself against counterfeits and fraud.

Gold Jewelry

Gold jewelry is one of the most popular ways to invest in gold. It offers a tangible, beautiful asset that you can wear and enjoy. It can also increase in value over time. Investing in gold jewelry can seem less intimidating than buying bullion or coins. Always check the purity of your purchase — research current market values when deciding what type of pieces to buy. And make sure you store your jewelry safely when you're not wearing it. Quality pieces need protection from scratches and other damage that could reduce their resale value.

Gold Miners

Gold miners specialize in the exploration, extraction, refining and sale of gold. Investing in them can take advantage of the potential upside of any movement in gold prices. When you buy shares of a gold miner, you're essentially betting on the success of the company's ability to produce and sell physical gold. 

Gold miners are typically leveraged to gold prices, which means that any increase in the price of gold can result in large profits for shareholders. Because these companies hold large amounts of physical gold, their stock prices often rise when global markets become more uncertain or volatile. A diversified portfolio of gold mining companies may provide a less risky approach toward buying gold stocks than physically owning bullion. 

However, they require in-depth research and examination on your end. However, you can also add exposure to this sector through an ETF or mutual fund focused on gold miners, avoiding the volatility of other investment forms but still potentially gaining robust returns during market uncertainty.

Gold ETFs

ETFs are one of the most common and widely used forms of gold investment. Some of these funds track the price of gold, meaning they will rise or fall depending on its spot price movements. ETFs are traded like stocks and are easy to access through online trading platforms and directly with brokers. You can purchase single or multiple shares in an ETF containing gold bullion, mining stocks or other forms of physical gold exposure.

Gold Mutual Funds

Gold mutual funds are another form of gold investment. Here, you'll purchase shares in a fund that holds physical gold and other related assets. Gold mutual funds, like ETFs, provide easy access to the market. If you're a small investor, they help you gain exposure to multiple gold investments with a single transaction. Many of these funds invest in mining stocks and physical bullion, so you can benefit from the underlying companies' short-term price fluctuations and long-term appreciation potential.

Gold Futures

Gold futures might be the most complex form of gold investment and require much research and understanding. A gold future is an agreement to buy or sell a set amount of a particular type of gold at a predetermined price on or before an agreed date. Investing in gold futures can give you leverage, as your profits will amplify if gold prices move in your favor. These contracts may come with low margin requirements, which allow you to gain exposure to large amounts of gold with relatively little capital. However, they carry substantial risks, including being exposed to sharp movements in price during volatile times. If you invest in gold futures, understand how they work and develop a risk management strategy.

Gold Options

Gold options are derivative financial instruments that give you the right, but not the obligation, to buy or sell gold at a predetermined price on or before an agreed date. Options gain you gold exposure without owning any physical bullion or mining stocks. They can be used as a hedge against market volatility and give you more flexibility and control over your portfolio. They also offer the potential for quick profits if the price of gold moves in either direction, depending on your position. However, they come with significant risk because they're typically traded using leverage or borrowed money. Be sure to clearly understand how options work before investing in them.

Gold Stocks

Gold stocks trade on stock exchanges just like any other company. While the value of gold stocks such as Barrick Gold (NYSE: GOLD) fluctuates daily, they're usually a good investment when the price of gold increases. But remember that the price of gold isn't guaranteed to increase. 

Historically, gold prices have increased when the United States dollar decreases in value against other currencies. Geopolitical unrest and fear can also play a role. As such, investing in gold stocks is a long-term investment rather than a short-term trade. That said, the volatility of gold stocks can provide you with additional returns compared to more stable investments.

How to Invest in Gold

Gold investing can be a great way to get diversity and exposure to ever-changing markets. In this section, we'll explore the various ways you can invest in gold and discuss basic concepts to more advanced strategies.

Step 1: Decide on the type of investment you want.

The first step is to decide which type of investment will fit your needs. You can choose from a few different options, including physical bullion, gold ETFs, mutual funds, futures and options. Each has its advantages and disadvantages.

Step 2: Do your research.

Once you've decided what type of gold investment you'd like to make, thoroughly research the asset before committing any money. This includes researching the provider or issuer using the MarketBeat stock lists, understanding the terms and risks associated with the product and becoming familiar with any tax implications for you.

Step 3: Determine your entry and exit points.

Have an entry point where you purchase the asset at a specific price and an exit point where you sell the asset at a particular price at a specific time. When deciding on both, look at the overall market — specifically gold prices — and the volatility of the asset.

Step 4: Purchase your desired asset.

Once you've chosen the right investment option, purchase your asset. For physical bullion, you can buy directly from a trusted dealer. Make sure that it offers competitive prices and provides secure storage solutions if necessary. For ETFs, mutual funds and stocks, you can buy stock in gold through any traditional brokerage platform or directly from the fund's website. You must purchase gold futures through a commodity exchange, typically CME Group or Intercontinental Exchange (ICE).

Step 5: Manage risk.

Gold can be volatile, but with proper risk management, you can avoid large losses while still taking advantage of potential profits. Developing a strategy for readjusting your investments in response to market changes can help. This could include reducing or increasing your number of shares and creating stop-loss orders, which set limits on how much money you're willing to lose on any one trade. Keep a close eye on news and developments that may affect the price of gold and adjust your portfolio accordingly.

Risks of Investing in Gold

Investing in gold can be a great way to diversify and protect yourself from market fluctuations. But here are some of the risks you should consider, too:

• Price volatility: Gold prices can move up and down quickly and drastically, making it difficult to predict their movements.
• Lack of liquidity: Gold is a less-liquid investment than stocks or bonds, which makes it harder to sell at short notice.
• Fees and taxes: Investing in physical gold may incur fees such as storage charges, while ETFs may have higher management fees than other investments.
• Geopolitical risk: International trade agreements, economic sanctions or political instability can affect the price of gold.

Investing in Gold: The Final Word 

Investing in gold can be a great way to diversify your portfolio and reduce risk. But before investing, research, understand the risks and make an informed decision. Have an entry and exit plan. With due diligence, you can make a brilliant investment in gold.

FAQs 

After reading the article, you might still question whether you should invest in gold and the various strategies of how to buy gold stocks. We've assembled some frequently asked questions to provide further insight.