How Can I Invest in Gold?

When investing money in gold, you need to choose the right entry point or to put it simply, the period when the potential for growth is greatest. For novice investors who want to invest in gold on a buy and forget basis, there’s some good old-fashioned advice. Buy at the bottom, sell at the peak, or buy cheaper, sell higher.

Options for investing in gold

We will consider it from the point of view of convenience for ordinary investors, and from the point of view of the size of the potential yield.

Gold ETFs. Investment funds investing investors’ money in gold. One share costs only a few dollars. They can be bought or sold on the stock exchange. An investor pays a commission for owning a gold fund – 0.5-1% per year from the value of assets.

Gold bars. Their sales value is approximately equal to the world prices. But it may differ depending on the size of the ingot you’re buying. The greater is its weight, the more attractive the price gold bullion dealer will give for you, based on the price per 1 gram. It’s just like in life, there are wholesale selling prices. There is a discount for large buyers. Choosing this type of investment in gold, you need to remember about taxes, namely VAT.  When selling you will be required to pay 18% in favor of the state.

Investment coins. Gaining popularity among the population, this type of investment. You can buy in almost any bank. By idea, the cost of investment coins should grow from year to year, much ahead of inflation.

Futures (contracts) to buy gold on the exchange. In terms of profitability, probably the most obvious investment tool. The difference (spread) between purchase and sale amounts to tenths of a percent. Transactions can also be done from home.

However, the disadvantages are also substantial. You have to have certain knowledge and initially make many gestures for starting to make transactions: open an account at the broker, deposit money, study the trading platform, with the help of which you will make transactions, analyze, forecast the price movement, etc.

Another significant disadvantage is the small investment horizon. The contract is usually concluded for a maximum of several months. Of course, you can open a new one, but again- it is unnecessary movements from our side.

Buying gold directly on the stock exchange. The price is practically close to the world quotes. The difference is a hundredth of a percent. You can buy and sell at any time at a fair price. No money is taken for storage. Minus – the cost of a minimum purchase is the equivalent of 10 grams of gold.


Summarizing the above, we get the answer to the question “Is it profitable to invest in gold?” in the form of the following points:

  • Investing in gold is especially profitable in terms of the preservation of funds.
  • The most accessible and simple tools for gold investments are OMC, ETF, or buying gold on the stock exchange or bullion.

The greatest potential for growth of precious metals, and accordingly investments, during the instability of world economy, or simply put in crisis.