Gold has made a lot of people rich in the past, will make many people rich in the future and always be an important part of business and investment. You don’t need to mine gold, invest in mining equipment or set up a refinery or mine to invest in gold. You can still invest in it or start a business in the gold sector. However, investing in gold is more than just checking out gold rate Pondicherry or looking up today gold rate Cuddalore or buying and selling based on the gold price in your city. Visit here for more info. If you are interested in becoming a part of the gold industry and earning money from it, here are some of the best ways to do so:
- Gold ETFs
A gold exchange-traded fund (ETF) is similar to a mutual fund but is listed on an exchange and trades like an ordinary stock. ETF is one of the best ways to add gold to your investment portfolio. The exact portfolio of the ETF does not change; it stays at a set level determined at the outset. Unlike mutual funds, gold ETFs do not contain a real amount of physical gold. Instead, these instruments track the price of gold.
- Gold mutual funds
If you’re not interested in investing in physical gold bullion but want some exposure to the precious metal, consider mutualized gold funds. Gold mutual funds hold gold stocks in their portfolios.
To understand what mutualized gold is, and why it can be helpful for investors, consider how it works. A gold mutual fund pools together money from many investors. The total value of all the stocks held by the fund is then equivalent to the total value of all the shares that investors have bought into the fund. Every share in a gold mutual fund represents a fractional ownership interest in all the gold held by the fund. Ownership in each stock held by the fund is proportional to the size of each investor’s stake in the fund.
- Gold option and futures
A gold option is an investment vehicle that gives the investor the right to buy or sell gold at a predetermined price. A call option gives the buyer of the option the right to buy gold at a specific price by a specific date; a put option gives the buyer of the option the right to sell gold at a specific price by a specific date. An investor who buys a gold call option believes that gold will be worth more than the predetermined price on or before the date when it can be exercised; an investor who buys a put, on the other hand, expects gold prices to fall below that predetermined price.
There are also futures contracts, which allow investors to trade in gold without having any physical possession of it. In this way, investors can take positions on both rising and falling gold prices.
- Gold flipping
As a gold flipper, you will be buying and selling physical gold bullion to earn a profit on the difference. However, as a gold flipper, you have to have a way of storing it at home or in a safe place. Some people prefer to buy and store their gold with firms who specialize in this business but that means you need to pay a fee for the service which can eat up your profits.