Why Bullion Investing Is Popular And What Are The Alternatives To It

Gold and to a lesser degree buying silver, have been the cause of fascination over centuries for many civilizations. In fact, in the earlier civilizations, gold was not just used to make jewelry but also for making currency. In today’s times, the fascination with gold has not decreased and people still consider gold to be one of the most desirable metals. At the same time, in the current economically unstable times, gold represents a safe haven for investment. Historically the price of gold has increased year after year and there has never been a time when the price of gold in the current year was lower than that of the previous year. This is the reason that gold is considered to be a safe investment which is not affected by economic recession or war or any other such happenings. However, buying and storing physical gold can be expensive, which is why people are looking for alternative ways of investing in gold other than possessing it physically.

Alternatives to bullion

Some of the different alternatives that you have to check while buying gold physically are an investment in gold futures, gold mining stocks, gold EFTs, stock and contracts for dissimilarity which are also known as CFDs. At the time of purchasing gold, merchants take into consideration the liquidity, transaction fees, premiums, costs for shipping and storage.

Gold stocks

With gold stocks you have the opportunity of benefiting from gold via the mining companies. Although the production costs are different, they are usually lower than the market price of physical gold. This means that the increase in the price of gold will directly increase the profit of a gold mining company. Here, however, there is the risk of losing money if the company is not managed properly. There is a market risk associated with investing in select companies. Traders should search for businesses having well-established records of growth and production. This includes the profitable acquisition of minor profitable yet small mining companies.

From Durham Precious Metals website.