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Interest in gold investing has grown substantially over the last few years — and there are a few good reasons for it. For starters, persistent inflation is impacting the economy, and gold can help protect investors during periods of high inflation. Gold is also considered a safe-haven asset and an effective tool for portfolio diversification, making it a smart bet for investors in all types of economies.
Adding Insight: Gold’s ability to retain its value during economic uncertainties and market fluctuations makes it a sought-after asset for investors looking for stability and diversification in their portfolios.
And, because gold is a finite resource, the price of gold tends to climb when there’s an uptick in demand. For example, the price of gold hit a new high in early March at $2,160 per ounce, and today, the price of gold is hovering just under $2,300 per ounce. But while an increase in gold’s value is a good thing for current investors, it can make it challenging for investors with limited budgets to purchase physical gold.
So what options do you have if the recent uptick in gold prices has caused gold bars and coins to be too expensive for your budget? Well, the good news is that there are still several budget-friendly options for adding gold exposure to your investment mix, even with prices at record levels.
Find out how the right gold investment could benefit you today.
6 budget-friendly gold investing options to consider right now
Here are a few ways you can invest in gold right now without breaking the bank:
Gold-backed certificates
One budget-friendly option to consider is investing in gold-backed certificates. These instruments represent ownership in physical gold stored in secure vaults without the need to take delivery of the actual metal, so they can be an affordable and smart option for a wide range of gold investors.
Adding Insight: Gold-backed certificates provide a convenient way for investors to gain exposure to gold without the worries of storage and security, making them an attractive option for those looking for ease of investment.
Gold certificate programs offered by reputable dealers or banks typically allow you to purchase fractional amounts starting at $50 or less, providing an accessible entry point into the gold market. Gold-backed certificates also cut out the extra costs of owning physical gold, making it one of the more budget-friendly options to consider.
Adding Insight: By eliminating the expenses associated with owning physical gold, gold-backed certificates offer a cost-effective way to participate in the gold market and benefit from its price movements.
Explore your gold investing options and get started here.
Gold-focused mutual funds and ETFs
Gold-focused mutual funds and gold exchange-traded funds (ETFs) can provide exposure to a diversified basket of gold mining stocks that can be purchased for a few hundred dollars or less. By buying into these funds, investors can get indirect exposure to the price movements of physical gold, as the underlying gold mining stocks tend to rise and fall in tandem with the precious metal.
Adding Insight: Investing in gold-focused mutual funds and ETFs offers investors a way to diversify their portfolio with gold-related assets, providing a balanced approach to gold investment within a more affordable range.
Many gold-focused funds have investment minimums in the hundreds of dollars range, making them accessible to a wide array of investors. This is significantly lower than the upfront capital required to buy physical gold outright, so if you’re searching for a budget-friendly way to invest in gold, this option may be worth considering.
Fractional gold ownership
One of the most accessible ways for budget-conscious investors to gain exposure to physical gold is through fractional gold ownership programs. These allow you to purchase small, affordable fractions of a single gold bar or coin, rather than having to buy a full ounce or kilo at a time.
The main appeal of fractional gold ownership is that it dramatically lowers the upfront investment required to start building a position in physical gold. Rather than needing thousands of dollars to buy a full gold bar, you can get started with as little as $25 to $50 in many cases. This makes gold investing much more accessible for those with limited budgets.
Adding Insight: Fractional gold ownership programs provide a cost-effective way for small investors to participate in the gold market, enabling them to accumulate gold gradually without large initial investments.
Gold savings accounts
High-yield digital savings accounts that are backed by physical gold are another budget-friendly option that may be worth considering right now. The main difference between these and traditional savings accounts is that gold savings accounts pay interest denominated in grams of gold rather than fiat currency.
Adding Insight: Gold savings accounts offer a unique way for investors to earn interest on their gold holdings, providing an alternative to traditional savings accounts that can help preserve wealth in the face of inflation and economic uncertainty.
And, many providers will allow you to open a gold savings account and make small recurring deposits starting at just $1. The balance earns interest and can then be redeemed for physical gold in the future.
Adding Insight: By offering the flexibility of low initial deposits and the potential to convert earnings into physical gold, gold savings accounts cater to investors looking for a gradual and accessible way to build their gold holdings.
Gold-focused collectibles
For investors with a penchant for numismatics, collecting gold-focused collectibles can be an engaging and potentially lucrative way to gain exposure to gold. This could include rare and limited edition gold coins, commemorative bars, or other specialty gold products.
Adding Insight: Gold-focused collectibles not only offer a unique and interesting way to invest in gold but can also hold additional value above and beyond the price of gold due to their rarity and collectible appeal.
While the upfront cost of gold collectibles may be higher than some other options, the long-term appreciation potential of unique gold collectibles can make this an attractive choice for the right investor.
Peer-to-peer gold lending
Another option to consider is peer-to-peer gold lending. These platforms focus on connecting individual lenders with borrowers who need short-term gold loans.
Adding Insight: Peer-to-peer gold lending provides an alternative investment opportunity for individuals looking to earn interest on their gold holdings while assisting borrowers in need of short-term financing, creating a win-win scenario for both parties involved.
If you position yourself as a lender on these platforms, you can earn interest by providing capital that is backed by physical gold owned by the borrower. The loan terms on peer-to-peer gold lending are typically 30 to 90 days, allowing you to earn a yield on your gold exposure with minimal risk.
The bottom line
Gold’s status as a safe-haven asset and an inflation hedge has made it an increasingly valuable addition to many investment portfolios. And, while the recent uptick in gold prices could be pricing out many casual investors, there are budget-friendly alternatives worth exploring that could allow you to gain exposure to the prestigious precious metal without stretching your budget too thin.
