The global demand for gold is expected to reach 4,741 tons in 2023, a 3% increase from 2022 according to the World Gold Council. With rising inflation and economic uncertainty, many investors are looking to gold as a safe haven asset. In response to the query on what is the best gold to buy for investment, this informative guide will provide insights into the best places to buy gold and the top gold products to consider for your portfolio.
Physical Gold Coins and Bars
Purchasing physical gold in the form of coins or bars allows you to hold a tangible asset. Popular coins like the American Gold Eagle, Canadian Gold Maple Leaf, and South African Krugerrand are minted by national governments and sold through dealers. Gold bars from reputable mints and refineries like PAMP Suisse are also readily available. Opt for at least one ounce size bars and coins when starting out.
Gold Jewelry
Buying gold jewelry is a versatile option, as you can enjoy wearing a beautiful piece while still benefitting from its intrinsic value. Focus on purchasing new, high-karat gold jewelry from reputable jewelers, rather than used pieces which may have less gold content. Pay attention to craftsmanship and buy timeless everyday pieces you’ll get much wear out of.
What is the Best Gold to Buy for Investment in 2023?
When investing in physical gold, most experts recommend opting for popular gold coins and bars over jewelry. Coins like the American Gold Eagle and Canadian Maple Leaf have precise gold content purity stamped right on the coin. Bars from trusted mints are also poured to exact gold measurements. This makes coins and bars easier to value and sell when the time comes. Gold jewelry has less predictable purity and is valued mainly for the craftsmanship.
Gold ETFs
Purchasing shares in a gold-backed exchange-traded fund (ETF) allows you to gain exposure to gold prices without owning physical metal. Popular gold ETFs include SPDR Gold Shares and iShares Gold Trust. With an ETF, you get diversification across many gold assets stored in a vault. ETFs offer trading flexibility, liquidity, and tax advantages in some cases. Just be aware of management fees eating into returns.
Gold Mining Stocks
Shares in gold mining companies can be attractive investments, as profits tend to rise when gold prices increase. Look at established mining companies with properties containing large estimated gold reserves. Be sure to research thoroughly, as individual company management and risk factors can cause substantial stock price volatility.
Gold Futures and Options
Gold futures contracts and options on gold futures allow you to speculate on gold prices without owning physical metal. Futures involve agreeing to buy or sell gold at a specific price on a future delivery date. Options give you the right but not the obligation to buy/sell gold futures. These are complex leveraged instruments best suited for experienced traders.
Gold IRAs
You can hold physical gold like coins and bars within a self-directed IRA account for tax advantages and additional diversity. This is done through an IRS-approved custodian who stores the gold on your behalf. Consider asset protection benefits and yearly account fees when opening a gold IRA.
Online Gold Dealers
Reputable online gold dealers offer convenience and competitive pricing when buying gold online. Look for dealers like APMEX, JM Bullion, and Money Metals Exchange that have a long track record and positive customer reviews. Verify their return policies and shipping fees before placing your order.
Local Coin Shops
Purchasing gold from a local coin shop allows you to see products in person before buying. Get to know dealers in your area and compare prices. Inquire about memberships with trade organizations like the American Numismatic Association or the Professional Numismatists Guild.
Gold Refineries
Some gold refineries like PAMP Suisse sell gold directly to the public through websites or showrooms. Buying directly from a top refinery can offer product authenticity. This route tends to have higher minimums and involve shipping costs however.
Gold ATMs
Gold ATMs allow you to purchase smaller gold bars and coins conveniently using cash or crypto. Transactions are anonymous. Premiums are usually high and selection limited however. Only use machines from reputable operators located in secure settings.
Avoid Gold Scams
Be wary of sellers offering gold at prices that seem too good to be true, high pressure sales tactics, requests to pay in unconventional ways, and other warning signs. Only do business with trusted sellers after verifying licences and checking for complaints.
Conclusion
With demand rising, 2023 looks to be an opportune time to diversify into gold. Physical gold coins, bars and jewelry are a solid starting point for beginners. Gold bullion provides intrinsic value, while jewelry offers enjoyment and appreciation. For convenient access to gold prices, consider a fund like GLD or IAU. Those comfortable with more risk can look at mining stocks and gold futures trading. Partner with reputable sellers and do thorough research to avoid scams. Let this guide give you confidence in navigating the gold market in the year ahead.
