3 Safe Ways to Invest in Gold
#1 — Gold Bullion ETFs: If you prefer liquidity and fear possessing physical gold, ETF trusts that trade like stocks are good options. The iShares Gold Trust (NYSE:IAU) and the SPDR Gold Trust (NYSE:GLD) are two to consider. You will technically be investing in the “trust” and not the gold itself, so you could eat some of your profits in fees and expenses. But for many investors, that’s a small price to pay for easy liquidity and tight SEC oversight instead of examining coins on their own.
#2 — Gold Miner Stocks: Another relatively easy, but indirect way to invest in gold is through metal-related companies. This involves buying individual mining stocks such as AngloGold (NYSE:AU) or Kinross Gold (NYSE:KGC). Obviously this is not a pure play on gold so there is some wiggle room between bullion prices and stock prices. But these stocks also pay dividends that shouldn’t be overlooked and offer strict SEC oversight of your investment as opposed to the pawn shop free-for-all some gold buyers endure.
#3 — Gold Mutual Funds: These funds invest in a mix of gold bullion and mining stocks, providing diversification as well as the ability to play the upside of gold. Again, this is not a pure play on gold, but the liquidity, safety and oversight of mutual fund investments can protect investors new to the gold game.