Have you thought about investing? Keeping money in your
If you are a hardcore financial planner, making good investments must be right up your sleeve. Not only are investments a good way to spend the extra bonus that came your way, but they will also be a boon for your long-term financial goals. It acts as a safety net in case you ever have a rough patch monetarily.
Once you invest, you can reap the benefits over the years. You do not have to be an adult to invest, you can do it at any age. There is power in investing at a young age because with time the investment is magnified. Therefore the longer you invest the more successful your investment will be.
If you are reading this article, then high chances are that you are looking for easy ways to make complicated subjects a bit easier. If you are a dummy then here is a guide that will walk you through everything you need to know about investing.
How Do You Decide Your Investment Strategy?
When you invest, it means that you are owning part of something which is more likely to be a company. Your investment strategy can be either short or long term.
Your stock or investment can grow depending on the market. If the price of the stock in the market goes up then your stock will cost a higher price, and if it goes down then the price will go down.
I know you are thinking that you do not want to lose money, but the whole idea of investing is risking. What is life if you can’t risk it?
What kind of products can you invest in?
There are different kinds of products which you can invest in depending on your preference. They include:
A stock is part of a company. Therefore once you invest then you are buying part of a company.
A bond is debt security. If you invest in a bond then you will receive interest depending on the terms of the debt.
- Exchange Funded Trade(ETF)
This can be defined as a basket of bonds and stocks.
- Mutual Fund.
It is basically the same thing as an EFT.
Getting started on investing.
Since you already know the basics about investing then how do you go about it?
If you have decided to venture into investing then you should be aware of your goals. Why do you want to invest? Therefore you have to answer the following questions.
- Do you want to save for the near future?
- Are you saving for your retirement life?
If your answer is yes to the above questions then here are few tips that can help you in your investment journey.
- Choose your investment very wisely. You can do this by consulting or even hiring someone to do the investment for you.
- Open an account and deposit some money.
- Keep tabs on your investment so that you can be sure that they are making you money.
- Relax and minimize pressure.
- Retire early and wealthy.
Investing in Gold:
Among the most popular value-holders in the history of currency, gold is an extremely precious metal because of its rarity. Moreover, gold can also be smelted and moulded and easily which means that there are a lot of ways to sell it. You do not have to worry about the durability of gold since it is resistant to corrosion.
Is Gold a Good Investment?
There was a time when gold was used widely as a circulating currency – that is not the case anymore. However, it is what countries use to tackle inflation and remains a common choice for investors. Being a scarce commodity, its price increases in proportion to rising demand. This supply and demand curve is the reason why gold retains its value over time.
If we are to believe history, then gold has performed better as an investment option when all other sectors were down. As a result, constant development has been made to introduce new investment opportunities.
Gold is an independent major asset which means that it is not difficult to invest in at all.
How to Invest in Gold?
There are a lot of ways in which you can invest in gold.
Gold miner stocks:
You will find a large number of gold mining firms which will help you in the process. Old mining stocks will give you indirect exposure to the price of gold. With the rise in gold prices, the share prices also see a northward trend.
While a rising gold price can benefit companies that work in the gold mining industry, the miners’ shares may not increase at the same rate.
If you want to trade in gold stocks, then you carry it out through an online share dealing account. After counting dealing costs, find a provider who will let you dabble in a number of markets with competitive prices. Usually, early-stage stocks have high growth potential. However, purchasing direct equities can prove to be stressful.
ETFs are a convenient and liquid way to get into a gold investment without having to handle the physical commodity. The total expense ratios have hit a serious low as providers compete amongst themselves to get excellent value for money.
ETFs track the spot price as their primary parameter. However, not all of them deal in physical gold. Some trade using futures contracts.
Synthetic ETFs make use of complex derivatives that have their own risks. They might perform in a manner that is different from how the gold is performing as a commodity.
Some ETFs also prefer to keep an eye on the share prices of gold miners. They can make a bet against the price of gold and profit when it falls.
When you are talking about investing in gold, you can always opt it for trading. These coins and bars are holders of wealth and you can store them for a time of need. Owning physical gold will let you protect your capital in situations where the market has crashed. However, you will get no income with gold holdings.
You can find a gold dealer who will give you the best prices, and also provide you with sellers when the time comes. Alternatively, you can visit brick-and-mortar and online jewellery stores for a purchase.
You can visit one of the many large fund houses that give gold open-ended funds or investment trusts. There is also an option to do a fund run with the help of a specialist provider. However, you should know what you are getting into beforehand.
There are different portfolios available. While some may include miners of other metals, others may have high-risk, early-stage miners. The broader the commodity the fund you choose, the more exposure you will get to other sectors.