You might have noticed that global stocks have taken a hit in 2020 and prove to be pretty volatile. This is mainly due to coronavirus while everyone panics all over the world about where to put their money.
For centuries, gold has been a popular store of wealth. In turbulent times, you might notice people talking about gold as an investment. During times like this, you often see the price of gold rising, while other stocks are falling.
There are a number of ways you can invest in or buy gold, from physically buying gold bullion or gold coins, to investing in gold-related stocks (such as mining companies), exchange-traded funds (ETFs) or gold derivatives like futures.
The main ways to invest or buy gold are:
One option is to invest in gold mining firms. You can find many large firms listed on the FTSE 100. Equally the Alternative Investment Market (AIM) can offer access to smaller, newer enterprises. Through investing in mining stocks, you’re directly linking your capital to the success of these companies, and the changing value and price of gold.
While heavily correlated, the performance of gold mining stocks will not perfectly match the price of gold. Unlike the resource itself, companies are subject to a number of external factors such as employees taking strike action, geo-political implications for the area, natural disasters, and business decisions.
ETFs are another option worth considering. ETFs give access to a whole load of assets, without having to put all of your money into one or two firms. If you need to brush up on ETFs, check out our guide.
Simply, ETFs allow investors to minimise risk, while taking advantage of the performance and general popularity of a particular sector – in this case gold.
There are loads of gold-based ETFs to select from, covering off a whole host of different companies within the industry. There are mining companies, exploration companies, as well as the actual asset itself. Gold ETFs are a pretty good choice for those who are new to investing, as well as those looking to secure their portfolio.
|iShares Physical Gold ETC||SGLN||0.25%|
|Invesco Physical Gold ETC||SGLD||0.29%|
|WisdomTree Physical Gold||PHAU||0.39%|
|Gold Bullion Securities Ltd||GBS||0.40%|
|WisdomTree Physical Swiss Gold||SGBS||0.19%|
|WisdomTree Physical Gold GBP Daily Hedged||GBSP||0.39%|
|WisdomTree Physical Gold GBP||PHGP||0.39%|
|WisdomTree Physical Precious Metals||PHPM||0.44%|
If the trading platform you use has access to the US stock market and other international markets, you should also be able to invest in a range of foreign gold ETFs.
For some people, part of the appeal of gold is being able to hold it. If you’re one of those people then good news, buying solid gold has never been easier. Traditionally, you can buy gold Bullion via the Royal Mint.
The Royal Mint is the government-owned mint that produced the UK’s coins. Head to The Royal Mint site and you’ll be able to choose from a range of Gold Bars. From 1g up to 1kg, you can buy it online today.
Alternatively, there are plenty of UK based dealerships that will buy and sell gold for competitive prices.
Before you buy physical gold, you should make sure of the following:
If you want to own gold but not store it yourself, many dealers will sell it and then store it on your behalf. Instead of receiving the physical gold, you will receive a gold certificate for the amount you bought.
However, these certificates are only as good as the company that issues them, and it may be hard to sell off your gold, e
A safe haven investment is typically stable in times of market volatility. A safe haven is also useful for investors looking to diversify their portfolio, decreasing exposure to riskier assets or investments.
There are many reasons people view gold a safe haven for investors. For example:
Wondering what to invest £200 in? Read our guide to learn what you need to consider first and find the best option for you.
Cloud computing stocks have skyrocketed during 2020. In this article we look at the best performers, how to invest in them, and also take a quick look at cloud computing ETFs for you to invest in too.
Wondering what leveraged ETFs are and whether it’s worth investing in them? Read our guide to learn everything you need to know.
Find out what influences the price of silver, why silver does well when the stock markets are declining and how to invest in silver ETFs.
Find out about gold ETFs, what influences their prices, how you can trade them and whether they could be worth your weight in gold.
OnBuy is one of the world’s fastest-growing marketplaces. In this guide we tell you everything you need to know about shopping at OnBuy from the UK.
This guide discusses the ways that you can invest in platinum, either in physical form or on the stock market.
Confused about DeFi? Find out how it works in this easy-to-read guide.
Planning a holiday but keen to read up on the specifics? Our travel team reveal all you need to know about jetting off during the coronavirus pandemic.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.