Gold And Silver Prices Today : Investment Recommendations
Invest in paper gold
Second possibility to invest in gold: the use of ETFs or Trackers. These listed funds, which are traded just as easily as a stock, replicate the price of an index and a commodity such as gold. But you can also opt for mutual funds or mutual funds that invest in gold. This type of investment is aimed at investors with a balanced risk profile with a medium-long-term investment horizon.
Alternatively, to opt for derivatives, these leveraged financial products have the advantage of being able to position themselves up or down and to play on the leverage to invest relatively large sums with an investment. initial limited. Leverage also maximizes earnings. For example, with a derivative with a leverage of 5, if gold climbs 4%, the derivative will show a 20% increase.
Gold And Silver Prices Today : Tips and Advices
But beware, the leverage can be favorable or unfavorable to the investor. Thus, if the gold price drops 4%, with a leverage of 5, you will record a loss of 20%. It is therefore necessary before investing on futures or certificates for example, to understand the mechanisms and risks associated with this type of investment. In case of a scenario contrary to expectations, the investment can quickly turn into disaster.
This type of product will therefore be reserved for sophisticated investors with an offensive risk profile who wish to speculate on gold with a short-term investment horizon. A derivative product with leverage is watched over like milk on fire and the position is only sustainable for a short time.
Gold And Silver Prices Today : Investment Guide
Shares of gold companies
Finally, the last option to position yourself on gold: investing in shares of gold companies. This type of investment is aimed at savvy investors able to achieve their own stock-picking and select companies with healthy balance sheets, able to resist if the price of gold was to decline.
Be aware that there are also ETFs replicating the index of gold companies such as the FTSE Gold Mines Index.
This type of investment is aimed at investors with a long investment horizon with a balanced risk profile to offensive.
How to invest in gold?
There are two ways to invest in gold: live or through “paper gold”.
The purchase of physical gold takes place through the acquisition of coins, ingots or ingots. Paper gold refers in particular to shares whose nature is based on gold prices or ETFs, the value of which duplicates the evolution of the price of the yellow metal.