Gold Investment Options: Physical Gold, Online Dealers, and Gold Stocks

Gold is a popular investment option for many people. It has been coveted for thousands of years and is considered a safe-haven asset due to its ability to retain its value during market volatility. Gold is also seen as a hedge against inflation due to its inverse relationship with paper currency. There are two main ways to buy gold: purchasing physical gold or investing in gold-leveraged securities like gold stocks, mutual funds, or ETFs.

Physical Gold

Bullion is physical gold of high purity and usually comes in the form of ingots, bars, coins, or rounds. Bullion derives its value from the gold content of the precious metal rather than the form of the metal, and it's measured in what's known as a troy ounce (standardized at 31.1034768 grams). Owning gold has several benefits, including being a physical, valuable asset that can be easily passed on to others, providing stable value, and not needing to watch it closely like you would with a portfolio of stocks, mutual funds, ETFs, and bonds.

Pros:

• Physical asset that can be easily passed on to others
• Provides stable value
• Not needing to watch it closely like a portfolio of stocks, mutual funds, ETFs, and bonds

Cons:

• Need for a secure vault or insurance to protect it
• Possibility of scams being committed by fraudulent online gold dealers
• Gold dealers typically charge a markup from the precious metal's spot price when you buy or sell it

Online Gold Dealers

There are many retailers that allow you to buy gold online and feature a variety of gold coins, rounds, and bars. These dealers often offer discounts to members of the military and for buying in bulk. Buying more than 100 gold bars (or 500 gold coins) is considered a bulk purchase, but this will depend largely on the individual seller. You may also be able to buy smaller gold bars, ranging from half a gram up to 100 grams, in stores that specialize in numismatics, pawn shops, or some jewelry stores.

Pros:

• Convenient and easy to buy online
• Discounts for members of the military and bulk purchases
• Variety of gold coins, rounds, and bars to choose from

Cons:

• Need to be careful of scams and markup prices
• May need to pay additional fees for shipping and insurance

Gold Stocks, Mutual Funds, and ETFs

Investing in gold-leveraged securities like gold stocks, mutual funds, or ETFs can provide exposure to the gold market without the need to buy physical gold. This can be a good option for those who don't have the time or resources to buy physical gold or don't want to store it.

Pros:

• Exposure to the gold market without the need to buy physical gold
• Diversification of portfolio
• Can be traded like stocks

Cons:

• Investing in gold-leveraged securities can be risky due to the volatility of the gold market
• May not provide the same level of stability as physical gold
• Can be subject to fees and commissions

Barrick Gold Corp

Barrick Gold Corp (NYSE:GOLD) TSE: ABX - Equities research analysts at Cormark cut their Q1 2024 earnings per share estimates for shares of Barrick Gold in a report released on Thursday, February 15th. Cormark analyst R. Gray now anticipates that the gold and copper producer will earn $0.17 per share for the quarter, down from their prior forecast of $0.27. The consensus estimate for Barrick Gold's current full-year earnings is $0.78 per share. Cormark also issued estimates for Barrick Gold's Q2 2024 earnings at $0.17 EPS, Q3 2024 earnings at $0.17 EPS and Q4 2024 earnings at $0.17 EPS. Barrick Gold (NYSE:GOLD) TSE: ABX last issued its quarterly earnings data on Wednesday, February 14th. The gold and copper producer reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.21 by $0.06. The firm had revenue of $3.06 billion during the quarter, compared to the consensus estimate of $3.13 billion. Barrick Gold had a return on equity of 3.88% and a net margin of 0.52%. During the same period in the prior year, the business earned $0.13 EPS.

Pros:

• Strong financial performance
• Diversification of portfolio
• Gold and copper producer

Cons:

• Volatility of the gold market
• Competition from other gold producers
• Environmental concerns

Conclusion

Gold is a popular investment option for many people. It has been coveted for thousands of years and is considered a safe-haven asset due to its ability to retain its value during market volatility. Gold is also seen as a hedge against inflation due to its inverse relationship with paper currency. There are two main ways to buy gold: purchasing physical gold or investing in gold-leveraged securities like gold stocks, mutual funds, or ETFs. Bullion is physical gold of high purity and usually comes in the form of ingots, bars, coins, or rounds. Bullion derives its value from the gold content of the precious metal rather than the form of the metal, and it's measured in what's known as a troy ounce (standardized at 31.1034768 grams). Owning gold has several benefits, including being a physical, valuable asset that can be easily passed on to others, providing stable value, and not needing to watch it closely like you would with a portfolio of stocks, mutual funds, ETFs, and bonds. However, there are also cons, such as the need for a secure vault or insurance to protect it, the possibility of scams being committed by fraudulent online gold dealers, and the fact that gold dealers typically charge a markup from the precious metal's spot price when you buy or sell it. There are many retailers that allow you to buy gold online and feature a variety of gold coins, rounds, and bars. These dealers often offer discounts to members of the military and for buying in bulk. Buying more than 100 gold bars (or 500 gold coins) is considered a bulk purchase, but this will depend largely on the individual seller. You may also be able to buy smaller gold bars, ranging from half a gram up to 100 grams, in stores that specialize in numismatics, pawn shops, or some jewelry stores.