Investing in the stock market by stock picking is the most common way of investing in the stock market today. Investors trading stocks will look at many methods to try and give them the edge and make more profits. While there are many different techniques and market indicators to try and predict which direction the stocks or markets will move, there is no fool proof way to be 100% accurate. If there was, we would all be rich, and everyone would invest. Technical analysis is one method used as a way to predict where a reversal in trends may occur. It is because markets do decline and become bearish that many investors will pull out of shares and look to gold bullion or other gold related investments.
There are many kinds of gold investments from gold bullion bars, gold coins, Gold exchange traded funds, Gold mining companies, or gold options and forward futures. All of these different investment vehicles come with their risks and rewards for the holder. The most popular way of investing in gold is with gold bullion bars. People sometimes mistake this for the big 400 troy ounce (ozt) bars you see in the movies, or the ones countries hold in big vaults. While you can buy these, it would be very costly and it would make it hard for you to sell off less than the whole bars worth, since you would not be able to cut off pieces.
This is why there are smaller gold bullion bars that you can buy, which come in weight of 1 oz, 10 oz, 100g and up to the big 1kg bar. This would make it easier to sell as you could sell one small individual bar at a time. Gold bars can have premiums of up to $50 less than if you were investing in gold coins. Even though these smaller bars are more convenient than the large 1kg bar, they still require storage. If you are able to store them in your own home’s safe, that’s fine, but the majority of people who buy gold may not have the luxury of big safes in their homes, and have to opt for storing the gold bullion in a bank vault or safety deposit box. This will incur charges that you may have to pay monthly or annually, depending on where you store them.
Investing in gold bullion is always a good way to hedge your portfolio against any down turns in your stock picks, failing currencies, or economic uncertainties.