You can buy shares in gold mines or exploration companies (called explorers) to become shareholders.
In case you are thinking about gold stocks, you ought not put the capital for security because of the high risk better in individual values. Especially as a newcomer to the currency markets. This speculative approach is more for and experienced and risk-conscious traders who are proficient at assessing risk / reward ratios.
Often, it is unclear how much gold gold companies will get and mine in the gold mines or what the expenses are. Gold mining stocks and shares therefore frequently fall sharply in bad news.
If you want to purchase gold stocks, then you should buy better Gold Index Certificates (even more on that). As a result, the risk is definitely spread over several shares. For instance, there may be the HUI index, which is known as the most crucial rosland capital index (also called “Arca Gold Index”). By January 2018, it contains a complete of 16 gold shares.
Of course, HUI usually benefits most from rising gold prices. That is, when the cost of gold rises, therefore does the HUI price (and vice versa). But: Once again, there can be an increased risk, since it can lead to strong cost fluctuations (these were recently also stronger compared to the gold price).
Gold as an expenditure with gold certificates and gold funds
This is another likelihood of gold investment. Particularly popular listed below are gold certificates and shown gold money or ETFs (definition) , which simulate the performance of the gold price or the HUI index 1: 1 mentioned previously. This means that if, for instance, the cost of gold rises by 2% in a single day, then the corresponding gold certificate (or gold ETF) also rises by 2%.
Various banks provide certificates and ETFs with different names. I do not want to mention anything (otherwise I might get the impression that I recommend a specific financial product to buy, that i definitely do not). But you can simply google it or question the lender or the broker of trust.
Note: As well as the relatively harmless certificates simply mentioned, there are also a great many other gold derivatives that are much riskier. Here you have to be careful as an investor! Above all, beware of leveraged derivatives (they are lever certificates , CFDs , warrants, etc.). These financial instruments can easily accumulate high losses.
If you are interested, you should better buy much less risky derivatives with an easier structure (ie some gold certificates that reflect the price of gold 1: 1). In any case, it is easy to lose an eye on the mass of obtainable derivatives. Therefore, often read the terms and conditions of the derivative and only spend money on the financial products that you truly understand.
Gold derivatives and ETFs likewise have one drawback that should not be remaining unmentioned: if the issuer goes bankrupt, the majority of the amount of money invested will be lost (even if that’s unlikely in an established provider). That should always be kept in mind.
Investing money in gold: ideas to complete
Gold stocks, gold ETFs and gold certificates can be quickly and cheaply bought through online brokers.
Besides gold, silver can be an interesting valuable metal (though much less popular as gold). And of course you may also invest money in silver. As with gold, there are silver bullion, silver coins, certificates and ETFs.
Stock market and investment beginners should better maintain their fingers off the indirect expenditure in gold. That is more appropriate for experienced traders who have a brief- or medium-term expenditure horizon at heart . By contrast, it is worth taking into consideration the long-term investment of a small expense as inflation safety in possible times of crisis.