What is the cheapest way to buy Gold?

Learn which strategies are effective for online gold trading, discover different ways to invest in gold, and explore futures and options for trading.

Thinking of investment?

What else can be the safest option than Gold?

This is what you must have heard from everyone. And why not? People have seen Gold as an ultimate metal used for jewellery making and considered it as a symbol of wealth and security. From ancient civilisations using it as currency to modern investors hedging against economic downturns, Gold has always remained a top choice.

But let’s face the real world now!

 In the modern era, where inflation rates are so high, buying Gold is not everyone’s cup of tea, as its rates are touching the skies. So, if you want to invest without breaking the bank (just kidding), what are the best gold trading strategies?

Let’s learn about the most cost-effective ways to buy Gold in the blog below.

Cheapest ways to buy Gold

Here are some of the common and the cheapest ways to buy Gold:

Physical Gold

Owning physical Gold feels empowering, but that’s a different feeling, to be honest.

You would also agree that there is something satisfying about holding a shiny, tangible piece of Gold in your hands. Wow!!! Isn’t it?

But the question is if it is really the cheapest option. You also know the answer, i.e., Not always.

Here are different ways you can hold physical Gold:

·       Gold coins: While gold coins look stunning and can be easily traded, they come with a premium over the gold spot price due to minting and design costs. Popular choices include American Eagles, Canadian Maple Leafs, and Krugerrands.

·       Gold Bars: It can be a smart option for those investors who want more value for their money as they are cheaper than coins in terms of premiums.

·       Jewellery: Of course, gold jewellery can be tempting, and it is more than an investment option, but it also includes high markups due to craftsmanship. Because of huge costs, it is often seen as the least cost-effective way to invest in Gold.

This means that if you are looking to buy physical gold at minimal costs, gold bars can be your best bet. But wait!! Before buying, you must ensure that you buy from a reputable dealer!

Buying Gold Online

Do you also feel that storing physical Gold is much of a hassle?

Yeah! It can be!

If your answer is yes, then the best part of investing in Gold is that you can own it digitally without the worry of safes and insurance. Here is the online gold trading guide:

·       Gold ETFs: It is one of the hassle-free and most affordable ways to invest in Gold in recent times. ETFs or Exchange-Traded Funds track the prices of Gold and are traded on stock exchanges, allowing you to invest in Gold without physically owning it. Isn’t it awesome? And the best part is that the transaction costs are much lower than buying physical gold. Like a win-win situation!

·       Digital Gold: Several fintech apps are available out there that allows you to buy small fractions of Gold at live market prices. This digital Gold is stored in secure vaults, and you can even convert it into physical Gold anytime, whenever you want to. What else do we need?

If you’re looking for a flexible and low-cost option, then ETFs and digital Gold can be fantastic choices for you!

Futures and Options

How about trading gold without actually buying it?

No, this is not a joke!

Welcome to the world of precious metals trading!

·       Gold Future: These contracts let you buy or sell Gold at a predetermined price at a future date. If you are someone who is familiar with the concept of precious metal trading, you can profit from price fluctuations. Well, who knows? But, it is not as easy as it seems, you must have significant market knowledge and carry risks.

·       Gold Options: These contracts give you the right (but not the obligation) to buy/sell Gold at a specific price within a set period. They require less capital upfront than futures but can be complex for beginners.

For experienced traders who have a solid pick of the best gold trading strategies, these instruments can offer an affordable way to gain exposure to Gold without storage worries.

But be cautious as they’re not for the faint-hearted!

Sovereign Gold Bonds (SGBs)

Issued by governments, Sovereign Gold Bonds are one of the most cost-effective ways to invest in Gold.

Now you may be wondering, Why?

The reasons are simple. First, you don’t need to worry about the storage. Additionally, they offer interest (yes, you earn money while holding Gold!).

You get tax benefits if held until maturity. Just imagine this!

Moreover, they are priced at or near market value with minimal additional costs. In short, if you want a budget-friendly way to invest in Gold, SGBs are a no-brainer!

Conclusion

Now that you are familiar with all the options, one question that arises is which option is right for you?

Your ideal way to buy gold depends on your investment style and budget. For example:

·       If you want something tangible? Go for gold bars.

·       If you are looking for flexibility? ETFs or digital gold work well.

·       If you are comfortable with risk? Futures and options might suit you.

·       If you prefer a stable, low-cost option? Sovereign Gold Bonds win!

To conclude, Gold has always remained a timeless asset, and with this guide, you now know how to get the best deal. But always remember, whatever you choose, make sure it aligns with your financial goals and risk tolerance.