Is there a safe way to buy gold?

Bullion coins and ingots are a relatively safe way to buy gold, although some investors prefer to invest in gold funds, such as mutual funds or exchange-traded funds (ETFs). Buying physical gold bars online is a fairly simple process. A common way to buy gold bars is through authorized online retailers. Look for gold bullion products on reputable retail websites, such as American Precious Metals Exchange (APMEX), JM Bullion and Wholesale Coins Direct.

Select the gold bars you want to buy by weight, quantity and price. Gold ETFs focus on owning physical gold or the shares of gold mining companies, creating different risk profiles. An ETF focused on holding physical gold bars offers investors direct exposure to the price of gold. They tend to adapt relatively well to the movement of the price of gold.

However, ETFs have a cost in the form of an ETF expense ratio. However, the cost may be worth it, as gold ETFs are usually the easiest way to invest in gold. With inflation rising and the stock market price well below its highs, some investors are looking for a safe asset that has a proven record of earning, and that's gold. For this reason, investors often consider gold as a safe haven in times of political and economic uncertainty.

When you receive the gold bars, keep them in their packaging to avoid scratches and store them in a home safe or bank safe. It is not known what will happen to gold prices in the near future, but you can safely assume that your investment will have grown five years from now with gold futures as they are. And keep in mind that you may have to pay shipping costs and insurance to ensure the safe transportation of your ingots. If you are opposed to having physical gold, buying shares in a gold mining company may be a safer alternative.

For this reason, simple gold bars tend to be a popular choice among investors looking for gold as a safe investment. Gold is considered a “safe haven asset” because when the prices of other investments, such as stocks or real estate, fall sharply, gold doesn't lose its value and may even gain value, as frightened investors rush to buy it. They may also be lower than what it costs to secure and store gold in a facility such as a safe deposit box. If you believe that gold can be a safe bet against inflation, investing in coins, ingots or jewelry are paths you can take to gold-based prosperity.

This helps investors seeking the safety of gold and protection against inflation to benefit from an investment in gold with more liquidity than a physical investment in gold. Because of the issues discussed above, you should store part of your gold in a secure jurisdiction where the power of politics is limited. Consequently, whenever there is news that points to some kind of global economic uncertainty, investors usually buy gold as a safe haven. That said, gold prices can be very volatile, meaning that gold isn't a totally (or even primarily) safe investment.