One of the most relevant aspects of investing in precious metals such as gold and silver is the wide variety of ways they allow.
Physical metals
Compared to stocks and bonds, gold and silver can be acquired as physical assets goldco review, either in the form of bullion or coins that can be kept in custody in some financial institutions —or even in private homes. This last aspect is especially relevant for some investors who like to touch the assets they own.
However, the physical precious metal suffers the costs of production and distribution. In addition, not everyone can store gold or silver at home, which implies the cost of custody by third parties, and having it at home would require specific anti-theft insurance.
ETFs
Exchange -traded funds, or ETFs, have become a popular way to get exposure to gold and silver without the responsibility and risk of storing a physical asset. Just like stocks or bonds.
Custody and costs associated with the gold or silver backing the ETF are borne by the ETF issuer, who then passes them on to the fund holder.
Mining company shares
Some investors opt for the opportunity to buy shares of listed gold and silver mining companies or specialized investment funds.
However, mining companies are often engaged in the extraction and production of various metals, so they lose part of the impact of variations in the prices of gold or silver.
In short, there are several ways to get your hands on gold or silver to hedge against market uncertainties or rising inflation. Both metals have their characteristics, which entails advantages and disadvantages that the investor should be aware of.