Gold has been a popular investment for centuries, and its popularity has only grown in recent years. Gold is seen as a safe haven asset, and it’s easy to see why. Gold is rare, durable, and has a long history of holding its value.
Investing in gold can be a great way to diversify your portfolio and protect your wealth. However, before you start buying gold bars or coins, William Schantz wants you to know some basics.
Beginner’s Guide to Investing Your Money in Gold
According to William Schantz, the first step in investing in gold is to buy gold bullion. Gold bullion comes in many forms, including bars, coins, and rounds. The most popular gold bullion coin is the American Gold Eagle, which is produced by the U.S. Mint.
When buying gold bullion, it’s important to remember that you’re not just buying a piece of metal. You’re also buying a collectible item with a value that goes beyond its weight in gold. The value of gold bullion is based on its purity, weight, and rarity.
Gold coins are a type of gold bullion, but they are different from bars and rounds in a few ways. First, gold coins are produced by governments and have a face value. This means that if you were to use gold coins as currency, you could use them to buy goods and services.
The second difference between gold coins and other forms of gold bullion is that gold coins are legal tender. If the government decides, gold coins can be used as currency. This has repeatedly been done in the past. Today, however, most governments use fiat currencies (paper money not backed by gold). Gold bars and rounds are not legal tender and cannot be used as currency.
Gold ETFs and Mutual Funds
If you don’t want to buy physical gold, William Schantz suggests investing in gold ETFs or mutual funds. Gold ETFs are exchange-traded funds that track the price of gold. They are a convenient way to invest in gold without having to store it yourself.
Gold mutual funds are a type of investment fund that invests in gold companies. These companies may mine gold, produce jewelry, or be involved in other aspects of the gold industry.
Investing in gold ETFs or mutual funds is a more indirect way to invest in gold. You’re not buying physical gold, but you’re investing in companies that are involved in the gold industry.
Stocks of Gold Mining Companies
Another way to invest in gold is to buy stock in gold mining companies. Gold mining companies are businesses that mine and process gold. They are often large, international companies with operations all over the world.
There are many different types of gold mining companies, and each has its own risks and rewards. Some gold mining companies are very large and well-established, while others are small and relatively new. When considering investing in gold mining companies, it’s important to do your research and choose a company that you feel comfortable with.
Investing in gold can be a great way to diversify your portfolio and protect your wealth. William Schantz has explained some important fundamentals of investing in gold. Be sure to do your research and understand the risks and rewards involved before investing in gold.