As uncertainty grows in stock market, gold continues to rise. Many people are looking for a way to invest in gold without taking possession of the physical asset. Taking possession of gold can cost a significant amount after you include shipping, insurance, and storing fees but adding gold to your portfolio is a lot easy with the use of ETFs (Exchange Traded Funds).
Two Easy Ways To Invest In Gold
Investing in the SPDR Gold Shares (GLD), which tracks the price of gold, is the easiest way to gain exposure to gold. There are many other ETFs that track gold but I recommend GLD because of the high volume, meaning that it is easier to get in and out.
The other way to invest in gold is through the gold mining companies using the Market Vectors Gold Miners ETF (GDX). With these companies, as the demand and price of gold goes up, so do the profits of gold mining companies. Choosing the ETF over a single company gives you the diversification while you will not get the best return, you will also not get the worst. I don’t have the time to research individual companies, so ETFs work better for me.
Not A Buyer Of Gold?
Looking to short gold? Try investing in PowerShares Gold Short (DGZ) which tracks the inverse of gold. If gold goes up, this DGZ goes down. If gold goes lower, DGZ goes higher.
What To Leverage Your Gold Position?
Looking to leverage your gold position without the use of futures, options, or the use of margin? The following ETFs track double the daily performance of gold. If you want a leverage position on gold moving down pick up some PowerShares Double Short (DZZ) which goes double (2x) short gold. If your thinking gold is going to move higher, you might want to try PowerShares Double Long Gold (DGP).
Remember not to over leverage yourself. If you are using these leveraged ETFs, don’t use margin and double your risks.
Watch your moves in gold as it created a double top recently.
Stumble it!
Digg This Article
Subscribe To The DailyMoneyAdvice.com Feed