Top Methods for Investing in Gold Online

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Last Updated: November 19, 2023

Many people are taking a long, hard look at their investments and realizing those tied to the stock market are not faring as well as they once were. Inflation is high, and stock market volatility makes for more significant risks.

People seek physical gold during economic downturns because it is a safe haven investment. Gold protects your investments from losses because it is a reliable store of value. Gold is accepted worldwide as currency, unlike cash, which is only taken in specific countries.

If you have considered owning physical gold, you may wonder about the options for investing in gold online. Is it safe? What are the available opportunities, and what about rising gold prices?

This guide will help beginning investors learn the ins and outs of buying gold online. We will even point you in the right direction to decide on a gold dealer.

Why Should You Invest in Physical Gold Bullion?

With inflation rising, people are flocking to invest in gold because it hedges against inflation. When fiat currencies, like the United States Dollar, begin to lose value, gold typically rises or retains its worth.

Although the United States has undoubtedly seen worse interest rates, they continue to rise. The stock market tends to be more volatile during high inflationary periods. You could lose money daily if all your investments are tied to the stock market.

Gold begins to shine when downward trends in the market cause other assets to become less valuable. Diversifying your investment portfolio by buying gold and other precious metals, at around 5% to 10%, can help you counterbalance your investment risks.

Investing in Gold Online

When people think of investing in gold, they typically only consider physical gold, but there are many more options. Learning about how you can invest in gold will help you further diversify your investments and protect your financial future. Retirement is more inviting with a solid nest egg.

Gold Bullion

Gold bullion is one of the most popular options for gold investors because it usually has a high purity level. You can find gold bullion in the form of gold bars, gold coins, and ingots.

Gold bullion usually ranges in purity from 99.5% to 99.9%. Central bank reserves keep bullion stored in vaults. Bullion's high gold content makes it expensive, but investors can often get a high return on their investment after selling gold.

Top 3 Gold & Silver Companies in 2023

Best Overall
9.7

Bar Code Score Card ™

5/5
Goldco
Excellent customer service from precious metals experts.
Best For Service
9.4

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5/5
American Hartford Gold
5 Star customer service, easy to work with, and a low price guarantee.
Best For Education
8.9

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4.5/5
Augusta Precious Metals
Earned best overall gold IRA company of 2022 by Investopedia's most transparent.

Gold Coins

Gold coins are becoming increasingly popular among gold bugs. Gold coins come in various levels of purity, with the most popular being:

Gold coins in the one-ounce class are highly liquid, making them ideal for investors who want to hedge against inflation and secure their wealth for the future. Gold coins with a purity of at least 99.5% are eligible for gold investment in an IRA.

Gold Mining Company Stocks

You can also invest in gold mining company stocks. You may invest in gold streaming and royalty companies. Although gold mining companies offer stock at market price, there are risks to investing in gold mining stocks. Some of the common risks include the following with gold miners:

  1. Improper management
  2. Excessive debt
  3. Cost overruns

Each of the above can cause gold mining stock to underperform on the price of gold. Investors must choose gold miners wisely. Research the track record of the gold miner and ensure its performance merits your investment.

Gold streaming and royalty companies provide funds for gold mining companies in exchange for a future payoff. Royalty companies receive a certain percentage of all the revenue the mining company generates while streaming companies receive physical metals from the mine.

Gold Mutual Funds

You can buy gold mutual funds through a bank. These funds are those that directly or indirectly invest in gold reserves. Gold mutual funds are pooled investment funds that invest in shares of gold companies.

Gold ETFs

Gold ETFs, formally known as gold exchange-traded funds, are commodity funds that trade the same way as stocks. Exchange-traded fund options have become increasingly popular over the years. Gold ETFs can help you gain exposure without the sometimes extravagant expense of buying gold bullion.

The main downside to gold ETFs is that they often underperform the price of gold. While there are fewer risks with gold ETFs, they are not risk-free.

Gold Futures

Gold futures are another way to gain direct exposure to investing in gold online. Gold futures allow you to obtain the right to purchase a specific amount of gold at an exact price by a particular date.

One of the most significant drawbacks of investing in gold futures is insufficient capital because the contracts move along with the price of gold. Insufficient capital can cause investors to sell at a loss. Futures are not for beginners because of their complexity.

Gold Certificates

Gold certificates prove ownership of a stated amount of gold and are given by companies. Although certificates give investors direct exposure to gold investments, they are risky. If the company issuing the certificate goes bankrupt, the gold certificates become worthless to the investor.

Gold Jewelry

You can also invest in gold via gold jewelry, but this is not always the most profitable option. Jewelry sometimes has more sentimental value than melt. Gold jewelry may also feature mixed precious metals, making it more challenging to get a fair price.

Tips for Learning How to Invest in Gold Online

Learning to invest in gold online is not as difficult as you think. Safeguarding your wealth and diversifying your investment portfolio can bring great peace of mind. We want you to know some tips to make online investments more accessible and profitable.

You should carefully research the right company to sell you a gold bar or other investments. You can have the precious metal shipped to your door, or the company stores it for you. When considering the options for storing gold, select the most secure vault closest to your location.

Most online dealers allow you to sell your precious metal at any time without penalty. Your sale price is based on the current price of gold, which fluctuates through the market day.

Should you decide to sell to the vendor, the company wires you the proceeds for the price of your physical metal. Storing gold in a vendor vault is one of the easiest ways to hold gold.

What Is Digital Gold?

Digital gold is a relatively new investment option. You can purchase gold with the smallest investment amounts. Digital gold allows you to invest in gold without worrying about its purity, safety, or storage issues.

You can consider digital gold as a representative of a physical gold investment. Although you do not immediately own the gold bars, your digital gold is backed by real gold. Your electronic gold is backed by gold reserves held in secure vaults.

Benefits of Digital Gold

Learning how to invest in gold online is important. There are many benefits to investing in digital gold, including the following:

There are also risks to consider, including that there is no regulatory body regarding digital gold. The lack of regulation may lead to gaps in business practices and a greater risk to investors.

Facts About Digital Gold

One of the top reasons people seek digital gold is because of its flexible nature. Unlike when buying physical gold, you can purchase digital gold in small increments without much money. You remain in control of how much gold you buy with each transaction, and they build up over time.

How to Buy and Sell Digital Gold Online

Many people invest in digital gold because of the convenience factor. You do not have to visit a dealership and haggle with the seller. You can make purchases and transactions as you please.

You should learn where to invest in gold online. Three companies are authorized to sell digital gold. SafeGold, MMTC-PAMP, and Augmont are options. Online platforms selling digital gold must be partnered with one of these three. Buying from platforms backed by these organizations will give you greater peace of mind in knowing the vendor is trustworthy.

FAQ About Where to Invest in Gold Online

We get many questions from readers concerned about inflation and wanting to learn more about investing in gold. The following are some of the top questions we have received from our readers.

It is safe to invest in gold online as long as you research carefully and learn as much as possible about the dealer. There are many ways to invest in gold, including buying bullion, ETFs, mutual funds, jewelry, mining stocks, and more.

Choose an investment that directly exposes you to the gold industry, and proceed cautiously. As you gain direct exposure, you will also gain experience and confidence in knowing how to pursue your gold investments.

The best site to invest in gold is American Hartford Gold or Goldco. Both of these companies offer stellar customer service and a massive selection of gold, silver, platinum, and palladium products based on the price of gold. Considering where to invest in gold online is critical for your investment strategy.

There are also other good options, including Augusta Precious Metals, Birch Gold Group, and Noble. We have reviewed these companies extensively and feel they are the best in the gold industry.

Beginners can buy gold by investing in gold ETFs and physical gold because they add diversity to your investment portfolio and are easy to pursue. As you advance, you will learn more about the price of gold and how inflation and the stock market impact it.

Eventually, you can consider futures and other non-physical gold options. The more you diversify your investments, the less likely you will lose money, though there are always risks.

The smartest way to invest in gold is to invest 5% to 10% of your investment portfolio. The price of gold often remains stable or increases in value during economic trouble, but there are always risks.

You should consider your risk tolerance, budget, and the price of gold before investing. Work with a financial advisor and a reputable dealer for the best results.

Should You Invest in Gold Online?

You should consider investing in gold products online because they are safe and convenient and have many options. Investing in gold allows you to diversify your investment portfolio and protect against inflation and deflation, which can both reduce your investment value.

Gold investments are gaining popularity because of this precious metal's historic stability. Gold is a safe haven investment that can protect your wealth and provide liquidity, should you need cash.

Top Rated Gold & Silver Companies in 2023
Best Overall
9.7

Bar Code Score Card ™

5/5
Goldco
Excellent customer service from precious metals experts.
Best For Service
9.4

Bar Code Score Card ™

5/5
American Hartford Gold
5 Star customer service, easy to work with, and a low price guarantee.
Best For Education
8.9

Bar Code Score Card ™

4.5/5
Augusta Precious Metals
Earned best overall gold IRA company of 2022 by Investopedia's most transparent.
4
7.9

Bar Code Score Card ™

4/5
Birch Gold
High level of customer service and a solid reputation
5
7.0

Bar Code Score Card ™

4/5
Noble Gold
High level of customer service and a solid reputation