How can you invest in gold online with smaller amounts of money?


Investing in gold can certainly be lucrative and as the markets continue to remain volatile the opportunity certainly exists to make some impressive returns. In fact, one recent article that I read placed the short-term future price of gold at anywhere between $1000 and $5000 an ounce! So gold is an investment that is sparking the interest of not only big investors but those who are just starting out investing too.

Though these upside price predictions may seem extreme they do reflect the anomaly that is gold! Gold is seen as a safe haven in troubled times and a preserver of wealth, so when a crisis hits, as they have in abundance over the past 5 years all bets really are off when it comes to the future price of gold. With all major economies of the world looking precariously over the edge of a cliff once again these predictions may not be as ridiculous as they at first sound.

How though can traders with smaller amounts of cash to invest get in on the act if the price of gold begins to rocket? Here are three ways you can do it.

    • Exchange Traded Funds ~ One share in an ETF gives an investor ownership of a small lump of gold (0.1 of an ounce) stored in a vault in London. These funds provide investors with a way to trade in physical gold in the same way they would standard shares through their broker.
  • Mining Stocks ~ When gold rises in value the shares of the companies that mine that gold also tend to rise. This is more risky than investing in an ETF because these stocks can be more volatile and some miners will perform better than others depending on their profits and what discoveries they make. A sharp drop in the price of gold could put a miner out of business, a sharp rise though could net you a tidy profit, so be careful and do your research. One other thing to note is that some of these mining stocks may pay a dividend so give you an income, something owning physical gold or an ETF would not!
  • Gold Buying Companies ~ You probably all know of companies in your area that buy gold. These companies then sell this gold on for a profit. It makes sense then that when the price of gold suddenly jumps, the profits of these companies jump aswell. Again some of these companies may also pay dividends!

I hope this helps you to see you don’t have to have physical ownership of gold to be able to invest in it!

Any comments are welcome!

3 Responses to How can you invest in gold online with smaller amounts of money?

  1. MarthaJ says:

    I am an avid gold collector and I love collecting gold in any form be it coins, bullions, rolls, jewelry and investing in gold backed IRAs. This takes me to various sites online, especially in my free time wherein I browse for gold to invest and or buy in way of jewelry. Also investing small amounts in ETFs and stocks has been profitable. However, I believe that if you can’t hold it you don’t own it as well; hence I prefer investing in bullions.

  2. Victor says:

    Interesting write-up. I’m with you on the positive outlook for gold and so will be metals strategist Michael Widmer who suggests gold could trade at $2,000 an ounce×731. In the wake of April’s gold price correction and the U.S dollar vacillating from weak to strong, people are seeking ways to invest in gold in some form or the other.

  3. Janine says:

    Do you have any suggestions for Gold ETFs?

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