What are some good ways to invest in gold?


Quick Answer

Some effective methods of investing in gold include doing so through exchange-traded-funds, closed-end funds, single stocks, gold coins and gold jewelry, reports the CNBC website. Gold is a precious metal that analysts compare against other investment options, reports the Houston Chronicle.

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Full Answer

As of 2014, there are 33 exchange-traded funds that invest in gold. One of the most common ones trades under the ticker symbol GLD. Other funds trade under the symbols DUST and AGOL, reports CNBC. Investors can purchase gold exchange-traded funds through a broker, notes CNN Money. Similarly, closed-end funds trade at a discount or premium on the underlying gold asset, based on market conditions. These funds typically have higher fees than exchange-traded funds, with one of the more common closed-end funds trading under the symbol SPR216.

Single stocks of gold mining companies are also available for purchase, reports CNBC. Pricing this stocks is complex, as the most notable options relate to companies with strong production and reserve growth.

An investor can purchase gold coins through a network of authorized dealers, which includes brokerage companies, wholesalers or precious metal firms. In addition, an investor can purchase gold jewelry that is measured in karats. The karats impact the price and durability of each gold piece, notes CNBC.

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