Personal Finance & Money Asked on May 12, 2021
I want to invest in gold. I have two options: On an exchange like etoro, I can buy shares of a stock that tracks the price of gold. Or I can literally buy a gold bar.
What’s the better option? The only difference I can tell is that with the former, I don’t actually own any gold, so I can’t sell it on a different exchange or at a gold marketplace. And if the servers are hacked, so is my virtual gold.
Aside from these differences, are there any other reasons why I might be better off buying real gold bars?
I can think of a couple of other reasons.
Answered by Simon B on May 12, 2021
I want to invest in gold.
I certainly traded a lot of gold, but I would call it trading, not investing.
What's the better option?
I would truly encourage you to do this:
I would encourage you to have nothing at all to do with gold until you actually have a bar in hand. Call me a mystic, but that's my opinion.
I would encourage you to have nothing at all to do with ETFs until you experiment with digi-gold. Call me practical, but that's my opinion.
I urge you to do nothing serious until you have the experience of all three.
(A) If you are gonna hold some gold long-term (more than a year) just buy kilobars and don't even consider any other option.† End of story.
(B) As outlined above. There is absolutely on cost or downside to trying all three (a couple dollars commissions here and there). Go try all three. It would be madness to take one route or the other before trying all three.
Don't forget, with commodities you can simply trade the futures.
(You know, like when you hear in a movie about someone trading FCOJ or Oil or whatever.)
Gold trades on comex, so GC. (You'd be trading GCK or whatever at the moment.)
It's extremely easy to do, but is very wired, so as with say heroin, take care.
Again that's for trading.
As I say above, If you are gonna hold some gold long-term (more than a year) just buy kilobars and don't even consider any other option.† End of story.
† ok, if you're incredibly rich, buy lbma bars, not kilobars!
Answered by Fattie on May 12, 2021
This question can only be answered when you decide why you are buying gold.
Answered by RonJohn on May 12, 2021
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