Investing In Gold
gold has traditionally served as a hedge, or financial safety blanket, for investors worried about rising inflation and global uncertainty. shirley believes the rate of inflation will accelerate in the coming years and this will increase the price of gold. one option is to buy physical gold from a reputable dealer or bank. many sellers specialize in gold coins or boards of gold that closely track the price of metal itself. while many investors like the insurance of possessing gold, shirley is worrying about safely storing large amount of bullion in her home. instead, she decides to invest in a exchange traded fund or etf that specializes in gold. each share she owns corresponds to a specific amount of gold owned and stored by the fund. shirley likes the fact that she doesn't have to handle the gold herself and that she has the freedom to sell her shares on the stock market any time of day. however, you don't have to buy gold or a gold etf to take advantage of increased demand for gold. for example, if shirley wants to increase her risk reward profile, she may decide to invest in companies that mine for gold. typically, the value of mining stocks moves in the same direction as the price of gold. although fluctuations tend to be more drastic and could be do to other factors such as new discoveries. this is particularly true for small mining firms. individuals choosing to invest in mining operations don't need to invest in just one company. they can moderate the risk by purchasing etfs that specialize in large or mid-sized companies. as with any investment. keeping a proper balance is key. most advisers recommend that gold take up no more than 10% of your portfolio.