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Five alternatives to invest in gold

November 15, 2019 by Glain max  

 

If you are looking for alternative investments, we must say that gold is one of the best alternative investments. Those who had investments in gold had the opportunity to make a profit with the increase in price.

Even if it is a precious metal, making such an investment does not necessarily require a large amount of money. Experienced alternative investment advisors tell you how to invest in gold, another interesting alternative if you are in search of new sources of income.

Alternatives to invest in gold:

Physical purchase: Acquire bullion or coins in specialized places. You should keep in mind that these sites must be authorized and it is advisable to hire a securities company that transfers the gold to the bank.
Banks offer the rental of safe deposit boxes, where you can store metallic money, jewelry, among others.
Investment funds: There are investment funds that invest in gold mining companies or have other positions in this metal.
Shares in mining companies: Buying shares of companies that are dedicated to the extraction of gold and other precious metals is another option. However, keep in mind that this is an indirect investment, as the company may have other production and business lines.
Invest in an ETF: This is a fund that invests in different assets and is directly traded on the stock exchange. In other words, these funds, in addition to investing in assets, are listed on the stock market as if they were a share.
CFD or contract for difference: Before telling you what it is, you should know that this is a financial tool used by investment experts. A CFD is a contract between two parties, who exchange the difference between the entry and exit price of an asset (currencies, bonds, stocks, indices, among others).

For example, an investor buys a CFD contract because he believes that an asset will rise. If the asset increases its value, the investor will earn the difference. Who sells the CFD contract considers that the price of the asset will fall.

Remember that investing in gold does not generate interest or dividends, that is, the profit depends solely on the increase in the price of this metal or its valuation.

If you are planning for any alternative investment capital, you must make a previous analysis, because this investment involves risk and it should be long term, because in the short term gold can be very fluctuating. 

It is also advisable to consult an alternative investment management firm before investing.