How To Invest In Gold? Physical, ETFs, Gold Miners And Gold Mining ETFs

In the late part of the economic cycle, it is wise to have portfolio exposure to gold.

There are various ways to get exposure to gold. The question is, what kind of exposure best fits your portfolio. Also, how much exposure is appropriate?

Risk averse investors should look for physical gold investing options, while those who seek volatility can look at miners. Perhaps a combination of both is best.

Given that gold doesn't produce anything, having a portfolio strategy is key for achieving positive returns.

I have made a few videos on gold miners (GDX) as I was digging into the complete sector to find the best ways to expose myself to gold. You can find my latest views on Eldorado gold (NYSE:EGO) here, or what to watch before investing in gold miners here. However, discussing individual gold miners doesn't give the right perspective on gold and on the right portfolio exposure. It easy to get fooled by daily price movements and miss the big picture.

It is important to know what is the proper exposure for a well balanced portfolio and then how to manage that exposure. As gold doesn't give you a dividend but is relatively volatile, you can achieve a good return by carefully balancing your position on a quarterly basis. But more about that in the video and in relation to the specific gold investment vehicle. Enjoy the video.

Video content:

(1:07) WHY GOLD AS A HEDGE?

(3:46) PHYSICAL GOLD INVESTING

(4:47) PHYSICAL GOLD ETFs (GLD) (IAU) (SGOL)

(6:14) GOLD MINERS

(9:13) GOLD MINER ETFs (GDXJ)

(10:41) INVESTING STRATEGY

(12:40) My GOLD STRATEGY

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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