How to invest gold: Gold has been regarded as high-value trading products or collectibles since ancient times, and once existed with “golden-based”.
Today’s financial investment system has brought diversified development to gold investment.There are many safe and convenient trading platforms for investors to make various gold investment.For example, you can Investment gold coin, Gold Bar and other physical gold (for example, from online gold distributors APEX Buy), or buy gold futures You can also invest in gold-related gold ETF Or financial products related to Gold Mine Company.So, what information needs to know before investing in gold?
What is the use of gold?
After the discovery of gold, people realized that the unique and precious attributes of this metal substance had become the world’s preferred trade currency in the world in the era without currency to simplify trade between countries.
At the same time, the precious attributes of gold and excellent processing performance make it a popular object of holding value preservation and art processing as collectibles, and it is also one of the important raw materials in the field of electronic products and dental fields.
With the arrival of the financial age, buying and holding gold became Anti-political turmoil and inflation The best choice has also become one of the means for investors to decentralize investment risks.
What is the golden place?
After the appearance of currencies in various countries, gold has become a measure of measurement between different currencies.The value of all currencies is measured with the value of gold.This is the so-called “Golden-based”, English is Gold Standard System EssenceThat is, the currency system with gold as its own currency.
The biggest advantage of gold is that no country can be printed without restrictions, because the value of any currency in the world is directly linked to gold.In other words, how much gold should be circulated.
The concept of the Golden Position was proposed in 1792 that the U.S.government at that time established a “dual-metal standard system”, and the dual metals here were gold and silver.
At that time, the value of the Dollar in the United States was directly linked to gold or silver.For example, $ 1 was equivalent to 24.75 grams of gold at that time.
When involving international trade, different countries determine the exchange rate between different banknotes based on the prices of their own currencies.
For the world pattern at that time, the price can stabilize the price and avoid different governments to raise prices by increasing the supply of currency and avoid inflation.At the same time, it also stabilizes the exchange rate of mutual interoperability between all participating countries using gold.The uncertainty of international trade.
However, on the other hand, gold producers may have more advantages than countries that do not produce precious metals.For example, they can raise their national currency exchange rate by increasing gold reserves.
What is the “Bradon Forest System”?
The Bretton Forest System, English is Bretton Woods System.That is, US dollar-centered international monetary system Essence
In July 1944, 44 representatives in the 44 countries after World War II reached negotiations at the UN currency and financial conference held in New Hampshire in the United States.
The theme of the agreement is: after World War II, the international currency system will be centered on the US dollar, and other currencies are linked to the value of the US dollar, and The foundation of the dollar is gold EssenceIt established the dominance of the United States in the world economy at that time.After the agreement was signed, the United States became the only country that capable of printing the US dollar.
In the Bladen Forest system, an important idea is, The dollar must be based on gold Therefore, it takes a solid “golden-based”, which is Gold Standard System.
The Bretton Forest system minimizes the fluctuations in international currency exchange rates through the gold-level and currency hook system, providing currency stability for trade and service trade and financing, thereby helping international trade relations.
The Bretton Forest System has also promoted the birth of two international financial institutions: the International Monetary Fund Organization ( IMF) He and International Revolutionary Development Bank (IBRD), later become the current World Bank ( World bank To.
The main purpose of the International Monetary Fund is to monitor the exchange rate and determine countries that need global currency support.The International Revitalization Development Bank aims to manage funds that can provide assistance to countries that can suffer from material and financial destruction due to World War II.
The disintegration of the Breten Forest system?
After a period of time for the Bretton Forest system, global trade began to grow benign.
However, as a global unified currency measurement unit, the rapid growth of globality and the increase in US liabilities in foreign countries have caused US gold reserves to be unable to cope.In 1964, the US dollar liabilities held by foreign currency authorities have surpassed US gold.Stock.
The United States has tried to solve this problem since capital releases have increased their capital deficit, but this has led to malignant inflation globally.The incompetence of US dollar and gold reserves has not yet been resolved.
Malignant inflation made people aware of the crisis of the US dollar value, so they began to propose to the United States to convert the US dollar in their hands into gold, which directly caused the risk of gold jewel in the United States.
The then US President Richard Nixon ( Richard nixon) At first, I hope to solve this problem by depreciating the US dollar relative to gold, but it has caused more exchange requirements.
Finally in 1971, President Nixon announced Stop linking the dollar to gold And because other currencies in the world are linked to the US dollar, all the currencies in the world are no longer supported by gold, which completely abolish the gold standard.
As a result, there will be what we are now Fiat currency system, English is Fiat systemm The printing of currencies from various countries is no longer strictly controlled.As shown below:
so, Bridge water fund The boss Ray Dalio shouted in a television interview in 2020, “Cash is Trash”.
When measured the value of the currency based on the value of a certain real (gold, silver), the printing of currency by countries was supervised and must not be issued at will.This can play a good role in controlling prices and slowing inflation.
However, when the measurement of the target is lost, the value of the currency is maintained by central banks in various countries.In general, it may be good to operate well.However, capital is greedy.Excessive credit will trigger a periodic economic crisis.The amount of currency issuance is also printed by the central bank by itself, which will cause a sharp depreciation of the currency.
For example, in 2017, the economic policy of the Venezuela government caused the value of the local currency Bolivar to decline, and the price soared.At the worst depreciation of Bolivar, Bolivar reached 96%.Essence
In contrast, the United States, the United States, and the United States, after entering the fiat currency system, the Federal Reserve ( Federal Reserve) It can be issued a large number of US dollars to issue a large number of government bonds internally and outside, making the world economy unbalanced.
Some people in the financial industry are very worried about the fiat currency system and believe that the fundamental standard is a system that is more suitable for the world’s economic environment, so they still use gold investment to hedge the currency risk under the statutory system.
Bridge Water Fund (Bridgewater associates) The boss Ray Dalio is one of the representatives that support gold investment.In addition, Kevin O’Leary in Shark Tank also supports gold investment, but he supports the investment of gold itself, not the stock of mining companies.
on the other hand,Berkshire HathawayThe boss Warren Buffett opposes gold investment.However, Buffett supports silver investment.Below is an interview with Buffett in 2020.Buffett believes that in 100 years, the yield of stocks will be higher than gold investment.
What is gold investment?
In tradition, the investment of gold is mainly based on preservation of value.In the age of depreciation of currency theory, or often replacing the type of currency types, the stability value of gold makes people willing to replace the funds in their hands with gold preservation.The gold that holds has always been highly valuable.
Later, with the diversification of financial products, the investment value of gold has gradually increased from the long-term value preservation role, and gradually increased the benefits through the market price difference.Gold investment has also been integrated into the field of financial investment, becoming one of the main members of decentralized investment risks.
Therefore, the gold investment in the market is mainly based on the value preservation investment held by the real object, and the speculative investment that uses the value difference to earn returns.
But in general, the long-term value preservation effect of gold investment is still higher than the short-term profit.As can be seen from the figure below, since the 1980s, the return on gold investment is generally a steady upward trend, but it is far lower than the returns of stocks.
Although the return rate of gold investment is far lower than the Dow Jones Index, the market indicated by the Dow Jones Index is the market that determines the value of the government as the currency market, and gold is the global trading market.
After leaving the gold standard, the transaction market based on the currency value has increased, and the volatility of the gold investment market is still stable.
What are the benefits of investing in gold?
Due to its unique precious metal attributes, in the lives of the people, holding gold is similar to holding an asset with an expensive price, and it is not like other financial investment products, it is just a bunch of numbers.Touching holdings, which also makes investment gold, holding gold makes people feel practical and at ease.
The gold investment after entering the financial investment field also shows the advantages different from ordinary investment targets because of the unique attributes of gold.
Many investors buy gold because their value is stable, so that they can prepare for hedging political turmoil and inflation.
In addition, many top investment consultants also recommend the investment portfolio of goods including gold to reduce the risk of overall investment portfolio.
On the other hand, financial products based on currency-based value measured units will be largely affected by the amount of currency.For example, the original stock is $ 10.When the government needs to print the currency for various reasons, after the government needs to print the currency, the currency needs to be issued, and the currencyIt may be $ 15 to buy.The asset value in the hands of the holder depends entirely on the financial policy of the central bank.The market fluctuations caused by relatively subjective factors make it.Monetary policy decisions occur immediately.
The financial investment community recognizes this risk, so they are more willing to invest in gold with relatively stable value globally.
Some financial people, such as Bridge Fund’s boss Ray Dalio, said: “Cash is Trash”, we can see that their resentment about the current fiat currency system and the value of gold investment.
How to invest in gold?
At present, the main gold investment models in the market are: physical gold, gold stocks, gold funds, and gold futures options.
1.Gold
The physical gold includes gold bars, gold coins, gold jewelry, etc.This is the easiest way for most people to think about when investing in gold.
Easy to buy physical gold, you can in many credit dealers, such as APMEX,, Moneymetals Buy directly.
In the early days, buying gold need to go to the gold shop.Different gold shops often give a certain difference in gold unit price, but now with the development of network technology, online retailers can often give more seductive gold unit prices.At the same time, they also give them.Accepting the buying business, when the customer wants to sell gold, there is also a mature and complete process that allows investors to quickly obtain funds.
At present, the most popular golden objects on the market are: from Crug, South Africa ( South african & nbsp; krugerrand) U.S.Eagle ( American Eagle) And Canada Maple Leaf ( Canadian Maple Leaf) Gold bars, gold coins, etc.
In the physical gold investment product, relative to the gold bars, gold Generally, the size is smaller and more flexible in the transaction.For gold jewelry, it often costs a certain cost because of the need to pay the “processing fee”.
Related Reading: How to invest in gold coins?
2.Golden stock
Most of the gold stocks refer to the stocks of gold ore companies or refined companies.
The stock value of these companies is largely affected by gold value.Therefore, investing in gold stocks will not allow investors to actively hold gold, but they can make the holder profitable in the rise of gold value.
But this is not absolute.If the mining company is not well-operated or the capital and profit allocation are improper, it will also lead to a decline in the stock of the company in the rise in gold and make investors suffer losses.
At present, the more popular gold mining company shares are:
- Newmont Company– Newmont Corp (stock code: NEM), Newmont, is the world’s largest gold mine company.It is headquartered in Colorado.It operates mines in North America and South America and Africa.
- Barrick Gold Company– Barrick Gold Corp (stock code: GOLD), Barrick is also a gold mine giant, headquartered in Toronto, conducting related businesses in 13 countries around the world.
- Franco-Nevada Company-Franco-Nevada Corp (stock code: FNV), Ferlanco-Nevada does not have the actual gold mine, but instead of buying a franchise right from other gold miners to operate.
3.Gold Fund
Such investment targets are mainly ETF funds or common funds containing gold-related asset shares.Investors do not have actual gold.
Such investment has more liquidity than physical gold, and provides a diversified level that a single gold stock does not have.It has more cost benefits.The average annual cost is 0.65%, which is far lower than many other investment.Receive the strict protection of the law, so that such investment products are very suitable for small investors and individual retirement accounts ( IRA)investor.
Many Golden Common Foundations use gold bars and gold companies as part of the investment portfolio, and combine with other products at the same time.Only a few funds only focus on gold investment.The pure gold fund has the advantage of the speed of gold and falling faster than the price change of gold itself, which will make the yield higher than the investment gold itself.
At present, the main gold ETFs of the market are:
- SPDR GOLD Shares ETF ( GLD): This is one of the earliest ETFs.It was launched in 2004.The ETF holds physical gold and stocks, and its price tracks the price of physical gold bars.
- Vaneck vectors Gold Miners ETF(GDX): This is a passive management fund, a fund that tracks gold mining and refined companies.
- Ishares Comex Gold Trust & Nbsp; ETF: This is the cheapest ETF with an annual cost of 0.25%.
- Gold Trust ETF: This is the latest Gold ETF.It was launched in September 2009.This gold ETF stores its gold bars in Switzerland, allowing investors to come into contact with different types of gold.
4.Gold futures, gold options
Gold futures contract is a certain number of gold agreements to buy or sell a certain amount of gold in the future.Gold Futures Investment is an investment futures contract itself.
For gold futures, you can be in Chicago Commodity Exchange Investment.Gold futures have more liquidity than physical gold, and there is no management fee, but the broker may charge the transaction fee for each contract, which is also called commission.
Gold futures contracts are highly risky, and it is not a suitable investment choice for unsteractable investors.Investors may lose more than the original investment amount by investing in gold futures.
Gold options are alternatives to invest in gold futures contracts.The investment gives options to the right to purchase gold futures contracts at a suitable price within a certain time range.
Gold options can be traded through agents.One of the benefits of investing in gold options is that it can limit losses to a certain range.Different from the investment in gold futures based on the current value of gold, gold options investors must pay the current basic value of gold to have option contracts.
Which institutions can invest in gold?
Investing in physical gold, investors can buy on online websites with good credit.These institutions often conduct strict quality appraisal of gold products sold to ensure the quality of selling products, thereby accumulating their own credibility.
At the same time, more types of gold products, more convenient shopping processes and lower trading costs or other expenses make online purchase gold is recognized by more and more investors.
APMEX
APMEX is headquartered in Oklahoma, Oklahoma, and is currently the world’s largest precious metal online retailer.Since its establishment in 2000, the transaction volume has exceeded $ 11 billion.
The company provides gold coins, gold bars, jewelry, and even rare collectibles of more than 20,000 kinds of gold, silver, platinum, and gold, as well as other coin products from different mints from all over the world.Its customer targets include wholesalers and investors to collectors.
At the same time, APMEX also provides a large number of buying and selling and educational resources.Buyers or sellers at any level can learn all relevant information about precious metals online.
In 2017, APMEX ranked 45th among the top 500 guidelines of the Internet Retailer® magazine, and ranked first in the third consecutive year.
SD Bullion
Since 2012, SD Bullion has quickly become one of the world’s largest precious metal retailers by providing the best prices and best services.The sales have exceeded 1 billion US dollars, and they have appeared on Inc.Magazine 500 in 500 in the United States.List of company with the fastest growth.
They attach great importance to letting customers understand the latest news and events that affect the precious metal market in a timely manner.As a result, the release and research reports are continuously carried out on the SD Bullion blog and the SD Bullionyoutube channel.
At the same time, SD Bullion uses the SSL/TLS certificate to protect the personal information security of investors, and cooperates with the most advanced and recognized payment processors and fraud defense to ensure the security of investors.
They will handle and transport all parcels safely and cautiously to ensure that no one knows what the parcels sent to investors or investors.
Vault
Vault is an online mobile network application, which is used to invest in physical gold, and is the best way to invest in physical gold by individuals and institutional investors.
VAULTED has the best cost structure in the industry, the direct guidance of precious metal experts, the industry’s leading security and privacy standards.All its investment products are stored in the ISO-9001: 2000 Royal Canadian cointer, and the gold in the vault has been insured and guaranteedWill not be stolen, damaged or other losses.
Make investors easily buy 99.99% of high-purity gold at a minimum transaction fee.
After investors place an order, the gold sends will not mix with the gold of anyone else, nor will they be rented or used by Vault or the Royal Royal Mint.
When you want to invest in golden stocks, gold funds or gold futures options, investors can open an account through online brokers, inject funds, and then start gold investment according to personal investment intentions or discussions with the agent.
Webull
Weniu supports 0 commissions, without minimum deposit restrictions.
Support complete extended period transactions, including complete pre-plate (4:00 -9:30 am East time in the United States) and after-market (4:00 -8:00 pm Eastern Time) trading period.
Weiu Financial Co., Ltd.at the US Securities and Exchange Commission ( SEC), And the Financial Industry Supervision Bureau ( FINRA), Register and be supervised.It is also a securities investor protection company ( SIPC) Members, SIPC protects the losses of cash and securities held by the SIPC member brokerage company with financial difficulties (up to $ 500,000, including a cash limit of $ 250,000).
Robinhood
Robinhood provides nearly 100 different gold stocks to choose from.Just open your own Robinhood application, enter the stock code of the stock you want to buy, click to buy and enter the number of target stocks, and the transaction will be easily completed.In addition, there are a lot of data analysis and report for customer analysis to choose the target gold stock.
E*trade
Like other basic financial transactions, gold futures options can be easily traded on E*Trade’s browser platform and mobile applications.
If investors are more biased towards stable investment, they can find golden common funds and ETFs, and even gold stocks in E*Trade.
The comprehensive and high-security E*Trade provides zero-use gold transactions for stocks and ETFs.
For the perfect & nbsp; E*Trade, the gold investment can be perfectly integrated into all investment projects of its own, making it an effective risk decentralized investment project.
What is the risk of investing in gold?
Based on different investment methods of gold, the main risks they face are different.
A.Gold
The biggest risk of physical gold is the loss caused by poor storage.To this end, investors need to pay high storage fees and insurance premiums, which to a large extent hinders the profitable potential of physical gold investment.
The second is the restriction of the return method.Investment stocks can get dividends, investment bonds can get interest, but the investment of physical gold rely on the increase in gold value.
Then there is the quality assurance of physical gold.After all, the gold worth investing is a high-purity gold bar or gold coin, or a gold jewelry of the master handicraft.Buy hybrid metals mixed with other ingredients.
The last is the time of return.The physical gold is not like a high volatility like stocks and funds, which means that the principal invested by investors may not be immediately returned.Investment of physical gold.
B.Financial Investment Products Gold Investment
Whether it is golden stocks, gold funds, or gold futures, market fluctuations will be subject to many factors.Although high volatility means the possibility of high profits, it is also highly risky.In addition, gold financial investment has its own unique influencing factors, such as many unconventional factors such as political turmoil in various countries and mining area output, which is worthy of focusing on the attention of investors, even if the investment strategy is decentralized.
What is the difference between gold investment and stock investment?
- Gold investment is the international market; stock investment is a regional market.
- Gold investment is a 24 -hour transaction; the stock market investment has a certain transaction time.
- Gold investment is affected by global economy and is not easy to be affected by human behavior; and stocks are easily controlled by the dealers or groups, such as a large number of selling “short”.
- Gold investment products are relatively easy to analyze and choose; the number of stocks is huge, and a large number of analysis of stock selection is required.
- Gold is an important part of the international currency system and will not disappear due to any factors.Listed companies may liquidate because of poor management, and their stocks have become black.
common problem
Question 1: What is gold investment?
With the diversification of financial products, the investment value of gold has gradually increased from the long-term value preservation role, and the benefits are gradually added through the market price difference.Gold investment has also been integrated into the field of financial investment, becoming one of the main members of decentralized investment risks.Therefore, the gold investment in the market is mainly based on the value preservation investment held by the real object, and the speculative investment that uses the value difference to earn returns.But in general, the long-term value preservation effect of gold investment is still higher than the short-term profit.
See More
Question 2: What are the benefits of investing in gold?
Many investors buy gold because their value is stable, so that they can prepare for hedging political turmoil and inflation.In addition, many top investment consultants also recommend the investment portfolio of goods including gold to reduce the risk of overall investment portfolio.
See More
Question 3: How to invest in gold?
At present, the main gold investment models in the market are: physical gold, golden stocks, gold funds, and gold futures options.
See More
Question 4: What is the risk of investing in gold?
Whether it is golden stocks, gold funds, or gold futures, market fluctuations will be subject to many factors.Although high volatility means the possibility of high profits, it is also highly risky.In addition, gold financial investment has its own unique influencing factors, such as many unconventional factors such as political turmoil in various countries and mining area output, which is worthy of focusing on the attention of investors, even if the investment strategy is decentralized.
See More
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