How Can Investors Earn Returns from Gold?

Investing in precious metals is a great investment and gold is one of the safest investments you can make if you want to make money over an extended period. It has been regarded as the currency of kings and pharaohs and has a long history dating back to nascent economic development. Today, we will discuss three ways you can earn returns from investing in gold.

gold piece.

Buying and Selling Bullions or Coins

You would normally think of buying coins or bullions when thinking of making money from raw gold. This is a correct approach as it has gradually increased in value over many decades. Bullions are usually available in 1 or 10 ounce options; however, you can find bullions in other weights as well. The only downside to buying bullions is that they require a considerable investment.

Coins are not as expensive as bullions due to their weight and size. They are great if you want to get a feel for investing in gold without a big hit to your pocket. Usually, you will find coins in 1 or 2 ounces variants. There are other options such as half or quarter ounce coins available as well. Coins can provide higher returns than the current price of gold if they have a rare pattern imposed over them. Look out for unique pattern coins if you wish to have a big payday.

Buying and Selling Jewelry

Buying second-hand real gold jewelry can be a great way to earn a return. The endeavor, however, does require some expertise to identify if the gold used to make the jewelry is pure. Flipping old jewelry is a decent way of making money, you can even melt this gold and use it to construct new jewelry.

Gold Stock Dividends and Capital Gains

Stocks associated with gold companies go up and down with the changes in the gold price. However, these companies still make profits regardless of the market. By investing in stocks, you can have an income source in the form of dividends.

Moreover, you can make money off trading stocks of companies. As we hinted before, changes in prices are amplified in the price of stocks. You will have a higher return on investment (ROI) buying stocks than physical bars. Bear in mind that this goes the other way around as well.

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