Ways To Invest In Gold And Buying Gold For Cheap

Unless you have been away on a distant planet, you are probably aware of the huge boom in the gold price. In this article we will look at ways to invest in gold, how to evaluate gold stocks and buying gold for 

Cheap.

The gold price inflation has been savage since the 1970, when gold was available for under $40 per ounce – today it stands at the thousand dollar mark. Not many investments have returned so well and so consistently over time.

So what are the different ways to invest in gold? Here are a few of the best and most recognized ways:

1. Another of the recommended ways to invest in gold is by investing in gold stocks. However, you need to know how to evaluate gold stocks to do this correctly.

2. One of the best ways to invest in gold is to buy gold bullion or gold coins, though there is most.

3. You can buy gold through gold jewelry.

There are also advantages to investing in gold – it is always in demand and it is fairly liquid with banks, jewelers, coin collectors and even specialized gold buying shops willing to buy your gold. It is also a good hedge against the increased cost of living, and versus economic and political volatility and decline as happens frequently in the world.

Generally, it’s not possible to pay very far below the market price for gold. Having said that, you may be able to get a reasonably good deal by buying gold coins and gold rich items.

Also, investing in the right gold mining stocks is effectively a way of buying gold for cheap because some stocks are always undervalued. That means their gold stock is worth far more compared to the share price you pay to acquire it. However, you must know how to evaluate gold stocks before doing this.

If you do decide to buy gold stocks, you must have the correct investment skillset and know how to evaluate gold stocks. That’s what we will look at next.

How To Evaluate Gold Stocks:

1. Always go for sound management. Make sure that the management team that is running the gold stock have pedigree. A good management can do wonders for a company and it’s ability to strike gold.

2. You need to understand how to read a balance sheet, profit and loss account and cashflow statements to make sure that your gold company is sound. There is often a lot of false hype surrounding certain gold stocks, and too often the hype does not pan out. When you understand how to read financial statements, you can identify dangerous investments and just stick to the safe ones.

3. Do your maths – try and calculate how much of your investment in the gold stock is backed by actual gold. The higher the figure the better.
Hopefully this article will help you in your quest to find the best ways to invest in gold.