How To Invest In Gold

Precious Metals 101

Published: February 22, 2022

How to invest in gold

There are many ways you can invest in Gold or Silver. It depends on your preference and what works best for you. 

Some people like buying Gold or Silver jewelry as an investment. At the same time, others prefer buying art made out of Gold. Those that prefer not to buy Gold as art or jewelry invest in gold stocks from mining companies. Some invest in Gold ETFs and Gold mutual funds too.

Whichever approach you choose to invest in Gold, note that not every gold investment is a guaranteed hedge or a store of value. 

The only way to invest in a tangible asset that hedges against financial turmoil is by investing in physical gold bars or gold coins and holding them at home or with a custodian.

Key Takeaways

  1. Investing in gold jewelry, gold art, gold stocks, or Gold ETFs, doesn’t provide direct ownership of physical Gold. 
  2. Rollover your 401k or retirement account into a Gold IRA to invest directly in real Gold or purchase the Gold. 
  3. You could store your gold at home or in a depository with a custodian. 

Investing In Gold Jewelry and Gold Art

Some people enjoy buying works of art made of Gold. Others like buying fancy gold jewels that may come in 24 karat gold, like Cartier. If that is your preference, there is absolutely nothing wrong with that. You work hard for your money. You deserve to buy what you work hard for. But you have to make sure that you are also taking care of your future.

That means investing in assets that appreciate or will give you dividends, an investment that will store the value of your money. 

A gold Cartier watch or gold art collections are nice investments, but they don’t appreciate nor store their value. 

A gold watch from Cartier could cost you more than $20,000 up to $130,000. And it will resell for only 40% to 50% of its retail value, according to The Real Real. That means if you bought a bracelet worth $2,000 ten years ago, you will be able to sell it, at best, for $1780. But if you invested $2,000 worth of Gold ten years ago, you will be able to sit on a little less than $3000.

So if you are willing to invest as much in brand jewelry, buy physical bullion instead. Invest directly in the material and not the brand. We are not arguing the value of jewelry or brands as an asset. 

Many brands like Louis Vuitton, Chanel, Rolex, and a few others have managed to craft valuable products that increase in value. But, you have to be picky when investing in brands.

Brands can tank overnight. Roberto Cavalli, Ralph & Russo, Nokia, and many more are all gone. If none of these sounds familiar to you, that’s the point exactly. 

These were once well-known names, and many of them had high-quality products until they closed. 

If you are looking to invest in something for your children to inherit, consider precious metals.

Investing in Gold stocks or Gold ETFs and Gold Mutual Funds is an option too, but they share a characteristic that gold jewelry and gold art have. 

Neither is a hedge. 

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Gold Stocks

If you’re looking to diversify your investment portfolio, make sure you include different assets that will strengthen your portfolio. Crypto, real estate, Gold stocks, and Gold IRAs are good diversifiers, and each plays its role.

For example, Barrick Gold is one of the most popular, if not the most popular, gold stock out there. It increased 8% in the last month and has outperformed the S&P 500, up 5.5%.

Noble Gold also knows that the increase in Gold’s spot price has something to do with it. And Gold’s spot price affects Barrick Gold’s stock price.

That should be enough for you to consider investing directly in Gold.

We are not saying you shouldn’t invest in Barrick Gold or any other gold stock. Noble Gold always advocates diversification. It’s crucial to have different assets that will secure your wealth. 

But make sure you also include insurance somewhere in your portfolio. 

As we’ve talked about it before in Why Invest In Gold, Gold doesn’t default. Nor does it go bankrupt. If you own a share in a company that defaults and crashes, your money will go down.

If you invest $10,000 in Gold today, your money with still be worth $10,000 or more in five years.

Consult with your financial advisor and understand how much money you should have in stocks, how much money you can invest in a store of value like Gold, and how much you should consider investing in Gold ETFs. 

Gold ETFs

Just as you can invest in gold stocks, you’re also able to invest in shares of a fund that holds gold bullion. AKA an ETF.

Employees enrolled in a 401(k) with the brokerage option choose to invest in individual stocks of gold industry firms.

One advantage of investing in ETFs is that our gold ETF cannot be stolen, unlike physical Gold in your possession.

You don’t have to worry about buying a fake either. 

You can purchase and sell Gold ETFs quickly. They prove to be a good investment option for short-term and medium-term investors.

Gold ETFs are available in small denominations. It will cost you more money to invest in physical Gold.

But there are some disadvantages too.

Your investment depends on the company and not gold itself. Gold price could be going up, but if your investment fails if the company you are investing in fails.

Gold ETFs have maintenance costs. 

When you sell, you will be charged a fee. So, you will get less than the actual sell amount.

There are additional costs such as brokerage or commission. So why not invest your money in physical Gold instead?

When you buy physical Gold with a gold company like Noble Gold, we take care of the depository of your metal if you decide you want to store your Gold. 

A Gold ETF may be a good investment and should look into if you want to begin as a short-term investor or medium-term investor. 

If you’re looking to be a long-term investor and invest in an asset that will appreciate, buy physical Gold or silver. Or roll over your retirement account to a Gold or Silver IRA. 

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Investing In Gold With A Gold IRA

Converting your 401K or retirement account into a Gold or Silver IRA is one of the two approaches to owning physical Gold. 

A Gold IRA is a common term people use when investing in Gold through their Individual Retirement Account or IRA.

A 401K retirement plan does not allow for the direct ownership of physical gold or gold derivatives such as futures or options contracts. That is why most people prefer to convert their 401K to a Gold IRA.

If you open a self-directed IRA or SDIRA, you can put different types of assets in there, and one of them is Gold.

If you open a Traditional SDIRA, taxes defer until you cash it out.

If you open a Roth SDIRA, you pay taxes now and pay nothing when you cash it out, even on your capital gains. 

As a gold investor, you are able to physically add gold coins or bars and silver coins or bars to your precious metals IRA account. 

As mentioned before, Noble Gold takes care of the private storage of your metals. 

And we take the security of your precious metals seriously. 

That is why we are in partnership with Equity Trust. Equity Trust has clients from all 50 states with over $30.1 billion in assets. Investopedia named it the best overall custodian for 2021. 

To learn more about which retirement account works best for you, first consult your financial advisor. Ask what retirement account fits better for you. 

Then contact Noble Gold to get your Gold or Silver IRA started in physical metal.

If you still want to pursue a different physical gold investment, the Noble Express may be better. 

Investing In Gold By Buying Gold

The Noble Express is a home delivery service. 

If you decide to invest in Gold and prefer to have the physical Gold in your hands, Noble Gold can make that happen.

We deliver your metals straight to your doorstep. Having immediate access to precious metals that can protect you in an emergency is our priority.

Noble Gold understands that sometimes customers prefer to touch their Gold, silver, platinum, or palladium. 

If you prefer to hold your metal rather than owning it in a Gold IRA, that works well with us.

Please note there are regulations and restrictions when you store your metals at home instead of holding them in a depository. 

The IRS considers Gold and other bullion as “collectibles.” Under the law, collectibles must be in the physical possession and depository. You cannot keep your Gold at home. If you have Gold, you need a third-party custodian and a depository to store your assets.

We suggest you consult a lawyer to thoroughly understand what you need to do. They will most likely advise you to store it back in a depository. You must consult a lawyer and accountant. You can never be too careful.

Once you have the information you need, Noble Gold will help you get your Gold and silver investment journey started with physical metal.

To learn more about investing in a store of value like Gold, download our FREE Gold and Silver Investment guide. It has all the information you need to know to start your precious metals investment. Click the “Download the Guide” button in our navigation bar to start.  

Precious Metals 101
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