From a year ago today, gold is up 17%, silver is 23% higher, platinum is up 3%, and palladium is off 40%.
Gold is also leading year to date, up 6%. This brings us to today’s topic, “The Best Ways to Invest in Gold”.
In order to highlight the best ways to invest in gold, we will begin with a look at the alternatives that should often be avoided. Any type of paper gold investment is often gold in name only. Gold will often be in the name of the product, such as an ETF or mutual fund, but there will usually be no way for the average investor to convert those paper shares into physical metal.
Since paper gold investments are loosely tied to only the spot price of gold, much of the gains due to increased physical premiums are left on the table. While there are numerous ways to invest in physical gold (which we will compare next week), paper gold is no substitute for physical gold when it comes to protection for every investor’s portfolio.