How to Change Money Into Gold
- 1). Decide how much money you want to invest in gold. Consider your general financial situation, as well as your outlook for gold compared to other potential investments such as bonds, stocks, or real estate.
- 2). Buy physical gold in the form of jewelry. Jewelry has the advantage of being wearable in addition to being made of a precious metal, but because of this it also costs more than an equivalent amount of gold bullion, which lessens its utility as a vehicle for pure investment. Depending on your individual situation, this may be a worthwhile trade-off.
- 3). Buy physical gold in the form of coins. Like jewelry, gold coins cost more than an equivalent amount of gold bullion because they have value as collectible items in addition to their value as gold. Older and rarer gold coins command a larger premium over the price of the gold itself. If you're interested in coin collecting as a hobby or as art, this may be an attractive option.
- 4). Buy physical gold bullion. Many coin and jewelry dealers also sell bullion in the form of gold bars to the public. If you're mainly interested in gold itself as a pure investment without the additional complexity of considering the worth of jewelry or coins as collectibles and art, then this may be the best option for you.
- 5). Buy shares in a gold exchange-traded fund (ETF). An ETF is an investment fund whose shares trade on the stock market. There are two popular ETFs that invest in gold, the SPDR Gold Trust (NYSE:GLD) and the iShares COMEX Gold Trust (NYSE:IAU). These funds invest in physical gold, which is kept at a secure warehouse, and charge a small annual management fee for this service.
