Much of Canada’s mining happens in Quebec. Thirty mines, 15 main processing industries, and 158 exploration sites with over 30 minerals, Quebec is indeed a force to be reckoned with.
Many people envy joining the exclusive group of gold investors. Still, there are many variables to understand before getting into gold investing.
Gold will come from a mining company in Canada before investors can buy-in. Investors can do this in several ways. These include:
- Buy the physical gold in coins or bars
- Purchase gold jewelry as an investment
- Buy government-backed gold certificates
- Buy shares from an exchange-traded fund or a mutual
- Trade options and futures in the commodities market
Gold a highly volatile, speculative option preferred for its ability to preserve its value. Unlike real estate or stocks, gold does not produce an income in that sense.
Often, gold investors use it as a hedge to protect themselves from volatility, currency weakness, and inflation.
While the jury is still out on the effectiveness of this practice, investors continue to make huge gold investments, driving the cost up. If you are looking for lucrative returns in 2021, here are some considerations to have in mind.
1. Determine Your Investment Goal
Like any other investment, any action should begin with a determination of what your goal is. This will help you zero in on the best investment option for you.
Essentially when stocks are in a bull market, gold tends to underperform. When stocks plummet, gold prices rise. This can give you a rough idea of when to buy and when to sell for profit.
Speculators market their gold on a narrow purchase to sell window. Their investment window can span from a day to weeks. The preference for these types of traders is ETFs and futures. These options support ease of trade in a highly volatile market.
Bullions can be stored with your dealer, a bank, or at home. Each option has some selling points and some negatives as well. Among your primary considerations should be safety.
You do not want to spend that kind of money on bullions only to lose them in a theft. Similarly, you do not want to store them with a dealer who ends up bankrupt.
Investors that keep their gold at home often do it for privacy reasons. This allows them to keep their gold information from third parties.
Gold can give you a hedge against inflation and volatility. It can also be used to diversify one’s investment portfolio.
The key is to buy at the lowest price possible, find safe storage, and monitor trends so you can strike when the going rates favor your investment.