How to Invest in Gold Without Storing It

Physical gold investments come with additional expenses, including storage. Some people buy safes to hold onto their bullion while others pay for bank safety deposit boxes.

However, there are other alternatives to investing in physical gold such as buying shares in gold mining companies or employing dollar-cost averaging strategies in order to lower their average purchase price.

Exchange Traded Commodities (ETCs)

If you want to invest in gold without owning the metal directly, one way is through a specialist fund or investment trust listed on the stock market. These securities follow the price of resources or commodities such as gold. Alternatively, purchasing shares in gold miners requires extensive research.

Directly purchasing physical gold such as bullion bars or coins may be tempting, but can be hard to store and costly to insure. Furthermore, political and geopolitical risk is present. You should ensure the gold you purchase is fully allocated and stored in an LBMA-accredited vault that offers contractual guarantees protecting it against being pledged or sold to a third party.

Gold differs from bonds and stocks by not paying interest; rather it offers long-term capital returns with the hope that its value will grow over time. But its short-term price fluctuation could still cause losses; other investments might outshone gold’s long-term returns in that respect.

Specialist Funds

There are various ways of investing in gold without having to store physical bullion. One approach is buying shares in gold mining companies – an easier strategy that may suit smaller investors with limited budgets.

Another investment strategy would be to purchase shares or units of an exchange traded commodity (ETC). These passive stock market investments allow investors to track the price of certain resources such as gold.

BullionVault and GoldMoney provide another digital service that allows you to purchase gold based on its monetary value, rather than weight. Once purchased, these coins and bars can then be stored safely within their vaults – usually much more cost-effective than storing physical gold at home or bank safety deposit boxes; however, these services come with risks, such as storage fees and insurance costs – making them more suitable as an inflation hedge than long-term investments.

Investment Trusts

Gold is often associated with investing in precious metals. People typically picture gold coins and bars, as hunks of pure bullion found in treasure chests or bank vaults. Unfortunately, physical gold investment can be costly in terms of storage fees and insurance costs, and fails to generate passive income; its sale can even incur taxes!

To sidestep these disadvantages, investors can turn to gold-backed paper assets like stocks and funds for diversification and reduced costs; eliminating storage and insurance expenses altogether. Still, such investments carry some degree of risk as their value depends on gold prices rather than any cash flows; investors should remember that any investment brings with it risks.

Small denominations

Many investors invest in physical gold as a hedge against inflation and other economic uncertainties, but the associated costs quickly add up – there are transaction fees, insurance costs and storage expenses when purchasing and selling this precious metal.

One way to reduce costs when investing in gold is through smaller denominations such as 1-gram bars. They’re much cheaper than their larger-ounce counterparts, providing an accessible and portable option that’s easier on your pocketbook compared to physical coins. Furthermore, this approach allows you to gradually build your portfolio over time by dollar cost averaging into gold over time.

Vaulted gold investments offer investors similar ownership benefits without incurring as many costs and hassles. This form of investing may be especially suitable for smaller budgets who want to build up meaningful gold exposure over time.


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