How to Buy Gold

How to invest in gold

Ken Poirot
4 min readSep 3, 2020

Gold has been a hot topic lately. For example, just yesterday, Goldman Sachs increased their future gold price forecast. Similarly, Warren Buffet’s recent significant gold investment made headlines all over the world.

Weeks before those announcements, I also told investors to buy gold (Money: Investing During the Coronavirus Pandemic, Money: Investing in Gold, Investing: Return For Investment, and Money: Investing in Gold for a Huge Return on Investment in 2021).

Both Goldman Sachs and Warren Buffet just reconfirmed that right now is the time to invest in gold.

Subsequently, investors continue to ask me how to buy gold, how to invest in gold, where to buy gold, where to buy gold bars, and what is the best way to invest in gold.

For this reason, today’s article will address the various ways to buy and invest in gold, as well as what I think is the best way for any investor to participate in the rising price of gold.

1. Buy Gold Bars and Coins

In my opinion, owning physical gold is the best way to buy and invest in gold.

Click here: How to Buy Gold.

Use the link above and fill out the online form for a free gold kit; someone will then call to help with the process of how to buy gold.

I refer my family, friends, and clients to this company above (that is my affiliate link, so I receive compensation when my friends, family, clients, or someone else does business with this company).

Owning physical gold assures full participation directly in the rising price of gold.

Furthermore, it is easy to track the performance of physical gold investments. For example, look up the spot price of gold to see if the price of gold is up or down.

2. Buy Gold Mining Stocks

Buying gold mining stocks requires in-depth research to pick the winning company (or companies) to purchase at the right price.

Typically, when the price of gold increases, so do gold mining stocks. The challenge: there is not a perfect relationship between the price of gold and each gold mining company. Some gold mining stocks will do better than others when the price of gold rises.

Furthermore, analyzing individual gold mining companies requires dissecting their balance sheets, cash flow, debt levels, current gold production, as well as predicting future gold production based upon current gold claim holdings.

Let’s face it; the average investor (me included) does not have the time or ability to use all of these factors to pick the best gold mining company (or companies).

In contrast, holding physical gold is so much easier; it is the right choice for the average investor.

3. Buy Gold Exchange Traded Funds (ETFs)

The good news for gold ETFs is that someone else has already done their due diligence to analyze and pick the underlying security holdings of the ETF.

The bad news for gold ETFs is their value will not go up or down directly with the spot price of gold. Just like a stock, the average investor runs the risk of buying the wrong gold ETF.

ETFs trade, just like stocks, which means their value is also dependent on their perceived value in the stock market.

Picking the gold ETF everyone wants means it will increase significantly in value, whereas if you invest in a gold ETF that falls out of favor (even if the price of gold increases), your gold ETF may decrease in value.

Once again, to participate in the increasing price of gold, the best and easiest way is to own physical gold.

4. Buy Gold Futures

Investors can purchase gold futures to invest in gold.

Unfortunately, when a commodity like gold is increasing in value, the future contracts of that commodity are offered at a higher price than the current spot price.

In other words, gold futures sell for more than the current gold spot price. Therefore, a gold futures buyer will not be able to participate 100% in the increasing value of gold (because the investor paid more than the current gold spot price to purchase the futures contract).

Furthermore, gold futures have an end date, so the right contract month will also need to be selected for purchase (both a fair price and a good contract month).

Even if an investor is correct, buying a gold futures contract at a reasonable price, the wrong contract month may be purchased; therefore, the investor can end up losing money.

For the average investor, it is best to stay away from the futures market.

Go here, fill out the information, and speak to someone who can guide you through the process of how to buy gold.

When investing in gold, it is best to keep it simple: buy physical gold.

Disclaimer: This article is solely my opinion for informational purposes only; therefore, it should not be considered Financial or Legal Advice. Please consult with a financial professional before making any significant financial decisions.

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Ken Poirot

Author, Entrepreneur, and Financial Professional. Quoted daily in social media worldwide. https://www.goodreads.com/author/show/8201501.Ken_Poirot