Entrust Learning Center > 3. Investment Options > Going For the Gold

Going For the Gold

There are many different ways to invest in gold, as part of your retirement portfolio, and you should know about all of them before you decide where to invest.

By: Lisa Moren-Bromma

IRA Insights

There appears to be a lot of misinformation and misunderstanding about investing in gold. Whether the investment is made in a self-directed IRA, which offers a tax-deferred or tax-free acquisition, or in a personal portfolio, an investor should know the main strategies and types of gold investing before they invest. Below are some typical strategies for you to investigate before you buy.

Gold Bullion

A number of companies, such as GoldMoney, offer the ability to buy gold directly, which is then stored in vaults. Many of these companies maintain vaults in Zurich and England, catering to investors who are fearful that the U.S. government will one day confiscate gold as it did in 1993.

Gold Mining Companies

This is a stock purchase in a gold mining company, where you need to watch both the stock itself going up and down, as well as tracking the fluctuation of gold itself. However, this is a way to get some gold exposure.

Gold Coins

If you believe the world is heading toward an economic collapse, gold coins such as the African Krugerrand or Canadian Maple Leaf may be the only viable currency left to trade.  Many investors believe that everyone should hold some gold coins, as dollars will become worthless. Then again, trading cans of tuna may become more valuable too.

Gold ETFs

Investors can buy a stake in real gold through an Exchange-Traded Fund, or ETF. ETFs trade on the stock exchange just like a regular stock, but are backed by real gold that the fund buys at the end of the day.

Anyway you look at it, being a gold bug could be a good thing, as part of one’s portfolio strategy. You should know what you are buying, the type of gold, and understand the risks before you buy. The choice as always is yours.

Lisa Moren-Bromma has 30 years of investing experience, primarily in real estate and in the cash-flow industry, and has taught over 1000 seminars on the subject.  She is the author of Wise Women Invest in Real Estate and Real Estate Investing for the Utterly Confused, and is the editor of the Wise Women Investor blog and newsletter.