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Are you interested in buying gold, but don’t know where to start? With so many types of gold available, it can be overwhelming to know which one to choose. From physical gold to paper gold and digital gold, each type has its unique characteristics and advantages.
In this guide, we’ll take you through the different types of gold. We’ll help you make an informed decision as a gold investor or collector on whether to invest in traditional physical gold or explore the world of digital gold.
Read on to learn more.
Physical Gold
Physical gold refers to gold in its physical forms, such as coins, bars, or jewelry. It’s the most traditional and tangible way to invest in gold.
Gold coins are minted by governments worldwide. They are available in different sizes and weights, such as:
- The American Gold Eagle
- The Canadian Gold Maple Leaf
- The South African Krugerrand.
Gold bars, on the other hand, are rectangular-shaped. They come in various sizes, ranging from small bars to large ones that weigh up to 400 ounces.
Jewelry
Gold jewelry is another way to invest in gold. However, it’s important to note that jewelry is not considered an investment.
It is often sold at a higher price than its actual gold value due to craftsmanship and design. Still, if you enjoy collecting gold for its aesthetic value, jewelry can be a good option.
Paper Gold
This refers to various forms of gold ownership that are not physical. They include exchange-traded funds (ETFs), gold futures contracts, and gold mining stocks. These types of gold allow investors to gain exposure to the gold market without physically owning gold.
ETFs are investment funds that hold physical gold and issue shares that represent a fraction of an ounce of gold. These shares can be traded on the stock market. This makes it easy to buy and sell gold without the need to store or transport physical gold.
Gold futures contracts are agreements to buy or sell gold at a predetermined price and date in the future. This type of gold investment is suitable for advanced investors and requires knowledge of the gold market and trading.
Gold mining stocks are shares of gold mining companies that operate in the gold industry. Investing in gold mining stocks can be a way to indirectly invest in gold, but it comes with higher risks due to the volatility of the stock market.