This involves purchasing physical gold in the form of coins, bars, or bullion. Gold coins, such as American Eagles or Canadian Maple Leafs, are minted by government entities and are generally considered highly liquid and easy to trade.
Gold ETFs are investment funds that track the price of gold and are traded on stock exchanges like individual stocks. These ETFs hold gold bullion or futures contracts, allowing investors to gain exposure to the price movements of gold without owning physical gold.
Futures contracts and options are derivatives that allow investors to speculate on the future price of gold without owning the underlying asset. Gold futures contracts involve an agreement to buy or sell a specified amount of gold at a predetermined price and date in the future.
Investing in gold mining companies can provide exposure to gold prices while also offering potential leverage to the performance of the mining industry. Gold mining stocks can be purchased individually or through mutual funds and exchange-traded funds (ETFs) that focus on gold mining companies.
Gold accumulation plans allow investors to purchase small amounts of gold regularly over time. These plans typically offer convenience and affordability by allowing investors to buy gold in fixed amounts or on a recurring basis.