Gold ETFs, Leverage & derivatives

By stag89 | timely-snacks | 21 May 2023


An indirect way to extar exposed to the price of gold is to buy shares of companies linked to the sector, such as mining companies and traders of the raw material. Bond prices tend to vary depending on the price of gold, but you will also be exposed to specific aspects of each company, which can be positive or negative. One of the advantages is the possibility of receiving dividends throughout the investment period, since these companies usually remunerate shareholders. There are also indices of companies that mine gold, so you can invest through an ETF.


If you want to invest in gold and do not have advanced knowledge, the easiest thing is to buy an ETF, being exposed to the real variation of the yellow metal and with a lower commission. Talk to your bank first to find out what options you have at your disposal.

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As with other assets, it is also possible to leverage investment in gold. A very risky strategy and one that can result in total loss of capital, very high losses or sharp gains. Contracts for difference are among the most popular, recording variations far above the oscillation of the underlying asset. These products are not advisable for retail investors and for those who want to apply savings in a long-term logic. In the range of complex financial products, there are also warrants and other derivatives.

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stag89
stag89

I write books and sell as pdf format through online. And made youtube channel for education purpose. Finally I also have my own online shops..


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