A Good Gold Accumulation Plan
You can accumulate gold over a period of time by purchasing a set amount every month.
You can invest $100 a month in gold and accumulate the metal slowly. The money can even be taken directly from your account.
This is an alternative to dishing out a large chunk of money at one time to fund your investment.
You can look at it like a thrift savings plan or one of those Christmas savings plans where the money is debited automatically from your checking and placed into your savings.
These types of programs will store your gold for you also, and you can take possession of it any time you want.
Two good automatic accumulation plans can be found at MetalStream and SilverSaver.
These companies have plans that will automatically deduct the funds from your account and then use the money to purchase gold or you.
Check these companies out to learn what their monthly minimums are and where they store your gold for you.
MetricStream and SilverSaver are the best choices if you plan on eventually taking possession of your metals.
There are other companies out there but some of them will not deliver your metals to you. Just make sure you do some research and find the one that fits your needs.
Gold Mining Stocks
Purchasing stock in a gold mining corporation will enable you to expose your portfolio to gold indirectly.
Several experts in portfolio management recommend new as well as existing investors to aggressively seek small gold mining corporations, which have rock-solid balance sheets and an impressive working capital to efficiently supplement their day to day operations.
Investing in mining stocks can be a highly effective medium of growing your portfolio because you will be investing in potentially growing companies.
And if you look at past trends in mining companies, they often exponentially grow in time and are then acquired by even larger companies and corporations.
Gold Bullion Mutual Funds
Investing in a successful and viable gold bullion mutual fund is another way of efficiently and effectively incorporating gold in your investment portfolio.
However, it is important to realize that not all gold bullion mutual funds spend money on the real stuff.
According to financial planner Tim Higgins, mutual funds related to precious metals invest money in mining companies and not the precious metal itself.
Therefore, it is a given that pricing will be significantly affected by the market elements that transcend the price of the actual commodity.
Invest in Gold Exchange Traded Funds
Another viable way you can incorporate gold in your investment portfolio is through buying gold exchange-traded funds.
Exchange-traded funds are basically individual intangible containers of stocks, similar to mutual funds, but different in the way that ETFs are subject to continuous trading in the financial markets, just like stocks are.
ETFs are not priced once every day, which is in the case of mutual funds.
By investing in gold-backed ETFs you aren’t purchasing physical gold, but rather, you’re buying an investment, which tracks and monitors the price of the commodity itself, which is net of the entire fund’s expenditures.