Different Types of Online Gold Investing

Stock Market

Throughout the ages, gold has been a lasting currency and a sign of wealth. But in the modern age, there are a boggling number of ways to invest in this most precious metal via the internet, and yet not all of them guarantee ownership. Learn about three common ways to invest in gold from the comfort of your computer screen and which might work best for you:

  1. Gold Certificates: When you buy a gold certificate from a bank, you’re basically investing in the financial welfare of the bank, not in the security of the gold. That’s because most gold certificates denote allocated gold, or gold that is pooled in a bank to back its financial transactions. You become like a creditor of the bank. The “certificate” of gold doesn’t guarantee that the bank has to pay you back in equivalent gold bullion should the bank fold.
  1. Exchange-Traded Fund: When you buy an exchange-traded fund, or ETF, you’re essentially investing in a fund that owns gold, just as if you were buying a share of a company. Buying an ETF means that you’re privy to dividends that the gold makes, but you don’t physically own any gold.
  1. Allocated Gold: In an allocated gold setup, you buy gold through an allocated gold company. This company acquires and stores the gold for you. Your gold has specific serial numbers that should be confirmed through third party accreditation. While you don’t physically possess the gold (and thus are relieved of the headache of trying to securely store it), you do own the gold and the company must give you gold when you’re ready to withdraw.

When it comes to securely investing in gold that you don’t have to physically hold, only one option stands out—allocated gold. Learn more about the benefits of allocated gold as a precious metals investment option today.