The people who seek to invest in gold bullion will also be seeking the ways where to invest at lowest risk. Risk is involves in each and every transaction of investment and trade. Investment is made through the excess money we have. The excess money can yield sufficiently as an extra benefit and will increase mobilization all over the economy. This is the reason for what government and other institutions are in support of investment. Thus investment in any form carries the dual benefit for the individual as well for economy. As a low risk investment alternative, we can have an option of gold investment which can also be made in several forms. Here I am going to explain some top of the list popular ways where you can earn through gold price fluctuations.
- Direct Ownership
Direct ownership is a way through which people can earn without any fuss. It does not involve any sort of intermediary or third party. You just need to visit the market when prices are low and anticipating having an increase in near future and buy gold bullion on net price. It is the simplest form of gold investment. You are supposed to keep an eye over the market operations and mechanism thus you should have some information about forecast and prices fluctuation. You can earn through price increments by selling the already purchased bullion again in the open market. A simple formula can be kept in mind: there is an inverse relationship between the dollar value and gold price in international market.
- Gold Exchange Traded Funds (Gold ETFs)
It is a best alternative for the people who are tired of investing in stock exchange. An ETF is a sort of mutual fund and also traded in stock exchange. It offers a fixed portfolio which you can buy in the beginning and is not supposed to have any value change afterwards. It yields gradually when the market turns oppositely.
- Gold Mutual Funds
These are not about physical gold investment. Gold mutual fund is a name of ordinary stocks but the companies who issue this sort deal in gold in any form. For example any international gold dealer or public limited gold dealer can float its shares in stock exchange under this head. This is a best alternative for the people who are reluctant to invest in physical gold.
- Junior Gold Stocks
Gold mutual funds are also known as senior gold stocks because the companies are usually multinational and large cap. Junior gold stocks are the inferior category of the above kind. They have greater risk because these companies are not established as above. They are usually small cap firms. It is more speculative sort. People who take risk can earn a lot in presence of a lot of systematic risk associated.
- Gold Options and Futures
This sort of gold investment is more likely for the risk-averse investors. It is more resembled to a selling and purchasing agreement in commodities. Futures and options are also traded in stock exchanges. There are two types of options i.e., put and call options. They are future transaction execution agreements thru a preset preliminary set price which is mutually agreed. The agreements can further be traded but cannot be executed before the maturity dates