For many investors, gold is a good addition to your investment portfolio -- but you should first learn about how to invest in gold and the types of gold assets you can invest in.
Gold tends to be less volatile than stocks, and is thus seen as comparatively safer. People use gold to diverse their portfolios or serve as a hedge when other investments decline. Gold's value tends to increase during times of inflation, when the dollar loses purchasing power.
Gold derivatives can be traded as options contracts backed by physical gold. These options eliminate the hassles of owning physical gold. Because derivatives and options require in-depth market knowledge, they are best left to experienced investors.
These are good options for beginner investors or those with a lower tolerance for risk. You can buy ETFs and mutual funds through most brokerages and investment apps. Make sure you choose one that best fits your needs -- investment options, fees and ease of use are all important to consider -- and create an account to get started.
You can invest in individual stocks through an account with a brokerage or investment app. - Some stocks pay dividends. - Gold mining stocks tend not to fluctuate as dramatically as physical gold, because they represent an investment in a company. - Stocks are not backed by physical gold, so you can lose your investment if the company's performance falls.