Some gold bugs would have you believe that there’s nothing simple about investing in gold. There are a lot of complex calculations and conspiracy theories out there. But investing in gold doesn’t have to be so complicated. The more you know before making any investment, the better, but gold can be simple. Gold does well when the stock markets don’t, gold maintains its value against inflation, and gold is largely undervalued. It belongs in just about every portfolio for different reasons. These are four of the most popular strategies right now for making money with gold.
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Invest in Gold for Your Retirement
You can invest in gold as part of your RRSP and it makes a lot of sense to include gold in your retirement savings. You can buy gold bullion as part of your RRSP from gold dealers like Silver Gold Bull, who make sure it’s insured and will also buy any bullion investment. That gives you the kind of liquidity you need when you know that you’re going to cash out part of your investment after your retirement. You can also find additional security with CIPF (Canadian Investor Protection Fund) and allocated storage, a service where a gold dealer keeps your gold in separated, insured storage. Allocated storage is available from online Canadian gold dealer Silver Gold Bull.
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Split Gold and Silver
More and more precious metals investors are investing heavily in silver. The price of gold is considered relatively stable. It may take another recession and potentially an economic crisis to give gold another bull run, whereas the outlook on silver is already bullish. A supply crunch and increased industrial demand mean silver has a higher potential ceiling.
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Buy Gold With Bitcoin
With Bitcoin enjoying peak values right now, one of the new ways of investing in bullion is to buy directly with Bitcoin. Online gold dealers are beginning to accept payments in Bitcoin and even offer cash discounts for those who do. As Bitcoin reaches unprecedented levels, the odds of a correction only get higher. You don’t have to abandon Bitcoin entirely – after all, it’s proven again and again to exceed expectations. But precious metals are a safe and quick way to reduce your exposure to a Bitcoin correction.
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Swim Against the Tide
Gold loves a crisis – when major economies in Europe were on the brink of defaulting, the price of gold soared to new heights. Whenever events stoke diplomatic tensions, gold piggybacks on the geopolitical uncertainty. As investors panic, they abandon the stock market and chase after gold, driving up the price. Investors who maintain a fixed percentage of their portfolio in gold, say 10 to 20 percent, will find themselves selling off gold when the price is rising and buying when gold is out favor and the price is low. That’s great value investing, but it means you need to go against the natural instinct to follow the majority’s lead. It’s also a good idea to make sure there’s an alternative to gold with good yields during these rushes if you’re going to be selling.
Look into all of your options before investing in gold and know what you’re getting into. Protect your retirement savings, earn money through value investing, and reduce the exposure of your portfolio with silver and gold bullion.