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Whether you invest in physical gold or gold stocks, the precious metal can make a good addition to your portfolio. Getty Images/iStockphoto
Investing in gold can be a good way to hedge the lasting effects of inflation today and diversify your portfolio amid a still-uncertain economic environment. But once you’ve decided to invest in the precious metal, it’s also important to choose the right way to do it.
Gold bars and coins give you direct exposure to the precious metal, while gold stocks may affect your portfolio indirectly. Plus, there are differences in how you invest, where you keep your gold, prices and more.
Before you make a decision, it can help to consider exactly how gold fits within your own investment goals. Start by exploring your options for gold investing today with a free information kit.
Gold bars and coins vs. gold stocks: How to decide
There are plenty of benefits to both physical gold and gold stocks — either can help diversify your portfolio and can serve as a long-term store of value. Nevertheless, your individual circumstances can help determine the best option for you. Here are a few details to consider:
Gold bars and coins
Gold bars and coins may be a good option for you if you want a straightforward way to buy into gold and directly benefit from its steady value over time.
To invest in gold bars or coins, you’ll first need to find a reputable dealer online or in-person. While there will be fees added on to your purchase price, it helps to know the current spot price of gold to make sure you’re getting a good deal. Physical gold — especially larger gold bars — may also require special storage and insurance, which can come at an added cost.
If you’re investing for the long-term, physical gold can be a slightly less liquid option — though it’s still relatively easy to buy and sell the precious metal at any time.
Gold bars, coins and stocks: Which is the best investment?
