So, you have decided that you want to invest in gold, but you are not sure if you can begin investing on a small budget. With the price of gold soaring these days, and plenty of experts claiming that it could continue to rise further, an ounce of gold has become very costly. But, never fear, there are ways you can finance your gold investment on a relatively tight budget.
One of the cheapest and easiest ways to buy gold is to buy small pieces of gold jewelry or other fashion accessories that are made out of gold. One potential issue with this type of investment is that you will need a way to verify the quantity and quality of gold in the items. There are many experts in the field that can help you with this, but just know that you may want to seek their help. Also, you would need to consider how difficult it could be to sell these items when the time comes. Jewelry will likely not be as easily liquidated as other types of gold.
Another great economical way to purchase gold for investment is by purchasing gold coins. Sure, there are some gold coins that are pretty hard for the common investor to afford, but the United States Mint produces gold coinage every year in quantities as small as a tenth of an ounce. At the time of this writing, 1/10th ounce gold coins are selling around $158 each, which is pretty attainable for the average investor. Gold coins produced by the U.S. Mint also have the reputation of trading very easily in the marketplace.
Gold bullion is another way to invest in the gold market on a smaller budget. Bullion is normally available from a dealer in quantities beginning at a tenth of an ounce. Bullion is slightly different from gold coins in that the bullion has no monetary value, but is sold expressly for investment purposes. Bullion is also very liquid and should be relatively easy to sell when you are ready to do so.
Some investors are also entering the gold investment arena through the use of Gold Mutual Funds. These are securities that are traded similarly to stocks that normally allow investors to enter for much smaller increments of money. Most Gold Mutual Funds allow investors to invest by making small monthly contributions as well.
One of the advantages of this type of gold investing is that you don’t have to physically house the gold because you are investing in a company that invests in gold. This could also be considered a disadvantage if you were looking to be able to physically store the gold yourself. You should also do some research to make sure that you are dealing with a reputable company when purchasing this type of investment.
Investing in gold, as with any investment, should not be taken lightly. There is no guarantee of future returns and your gold could possibly be worth less when you sell it than when you purchased it. But, if you really want to invest in gold, there are ways that you can do so on almost any budget.
Sources:
United States Mint, www.usmint.gov