Investing in gold, what are the most popular ways today?

Investing in gold for profit and safety is a method that many Vietnamese people have prioritized in recent years to preserve their assets.

Gold investment is a form of buying gold and making a profit from the fluctuations in gold prices. Over thousands of years of history, gold has always been considered a safe haven asset. Even during economic crises, gold still retains its own value. Therefore, investing in gold is considered an effective way to protect assets from market fluctuations.

Popular ways to invest in gold:

- Investing in gold bars and gold ingots: This is a traditional way of investing. When people have money, they go to gold shops to buy and store it, then sell it when the price is high to make a profit.

Advantages: can be purchased at any gold facility with a certificate, extremely high liquidity.

Disadvantages: there is a difference between the selling price and the buying price, the risk of theft is high so people have to store it safely.

You can invest in gold bars and gold coins. (Illustration photo).

- Online gold investment: This is a form of buying and selling gold but you do not need to go directly to the gold store to trade but can buy directly on online applications such as. Accordingly, each piece of gold or gold jewelry is encoded into an online index, investors will buy these indexes, monitor fluctuations and then make buying/selling decisions to make a profit.

Advantages: Save time, store gold quite safely, grasp investment opportunities quickly.

Disadvantages: If the application is not reputable, you will be scammed and risk cutting losses and taking profits.

- Contract for Difference (CFD): Margin trading with CFD is a way to invest in gold in the short term. Accordingly, investors do not need to own gold or spend time preserving real gold to make a profit when there are price fluctuations. They can place buy or short sell orders and then profit on both up and down prices.

According to experienced CFD investors, this trading can help them earn an average profit of 3 - 7%/day, depending on the leverage ratio and market volatility.

Advantages: Anyone can invest with small capital but high profit rate, good market liquidity, no commission or competitive trading, contract has no expiration date, can trade anytime, anywhere.

Disadvantages: requires investors to have knowledge to analyze the market, along with risks when using financial leverage.

- Futures contract: This form allows investors to deposit and use leverage to earn profits. This is a contract to agree to buy/sell gold at a specified price on a specific date in the future. In Vietnam, there is currently no product of gold futures contract.

Pros: no storage fees, good market liquidity and quite high profit margins.

Disadvantages: Large trading volume, commission fees, contracts have expiration dates, and the risk of using leverage can amplify losses.

Gold ETF: This is an investment fund that invests only in gold, gold mining companies or gold-related products. The price of the fund is linked to the trend of gold prices.

Advantages: High liquidity, no storage fees, sustainable profits, the fund always has a team of experienced analysts and investors to help you close the profit well.

Disadvantages: Management costs are incurred to pay for the fund, in some countries, gold ETFs do not receive income tax reductions like other funds, and investors also have to bear the risks from unreliable fund organizations.

Stocks: Another form is to buy stocks of gold mining companies. Stocks of gold and gemstone companies listed in Vietnam include PNJ, SJC, SJSC, HJC, VGB, NJC, AJC. When the price of gold is on the rise, the market expects the sales and income of this company to increase as well. Investors will receive dividends from the stocks of that gold and gemstone company.

Advantages: Investors can easily buy shares of these companies on the stock exchange, and have a regular source of passive income thanks to dividends. Liquidity is also good.

Disadvantages: Subject to stock market volatility.

Source: https://baolangson.vn/dau-tu-vang-nhung-cach-nao-pho-bien-nhat-hien-nay-5034725.html