How to Buy Gold Monthly and Diversify Your Portfolio

Buying gold monthly can be a great way to diversify your portfolio and hedge against inflation. You can start small with a monthly investment of $100 or more.

Gold is a tangible asset that can provide a sense of security in uncertain economic times. Its value has historically increased over the long term.

To buy gold monthly, you can use a self-directed IRA or a gold investment app like Goldco. This will allow you to invest in gold without having to physically hold it.

Diversifying your portfolio with gold can help reduce risk and increase potential returns.

If you're new to investing in gold, you're probably wondering where to start. There are several forms of gold investment to choose from, including physical gold, digital gold, and paper gold.

Physical gold comes in the form of gold bars or coins, which can be stored in a vault or taken possession of. You can buy gold bars in various weights, ranging from 1 gram to 1 kilogram, and they're stamped with the manufacturer's name, purity, and weight.

Digital gold and paper gold, on the other hand, are more convenient options that allow you to invest in gold without physically holding it. You can invest in gold-backed securities, such as gold ETFs, gold mutual funds, or stocks of gold miners and refiners.

Here are some popular options for investing in gold:

Bars and coins are two popular forms of physical gold investment. Whether you're a seasoned investor or just starting out, understanding the differences between these two options can help you make informed decisions.

Physical gold can be purchased in the form of bars or coins. Bars are often preferred by those with larger budgets, as they offer a lower premium over the value of the gold contained within them. However, larger bars can be less flexible in terms of changing the size of your holdings or buying and selling.

Coins, on the other hand, offer more flexibility and are often a better option for those with limited budgets. They're also Capital Gains Tax (CGT) exempt in the UK, making them a more attractive choice for some investors.

Some mints produce smaller denominations of gold coins suitable for investors with limited budgets. For example, The Royal Mint offers a range of bullion coins that can be purchased in various sizes, including smaller denominations.

If you're interested in purchasing gold bars, there are several reputable dealers to choose from. Here are a few well-known options:

Remember to always research and compare fees, as well as the provision of carriage and insurance, before making a purchase.

Gold ETFs are a popular option for investors looking to gain exposure to gold without the need to physically own and store the metal, which helps keep the costs down.

You can purchase shares in a gold ETF with a small budget, which typically represents a fraction of an ounce of gold.

Gold ETFs are traded on stock exchanges, making them easy to buy and sell similarly to individual stocks.

Some examples of gold ETFs include the VanEck Gold Miners Equity ETF (GDX).

Investors can also consider gold mutual funds, like the Fidelity Select Gold Portfolio Fund, as an alternative to gold ETFs.

Gold ETFs offer a convenient way to invest in gold without the need for physical storage or handling.

You can invest in gold through various options, including physical gold, digital gold, and gold-backed securities. Physical gold can be bought in the form of gold bars or coins, and you can choose to take possession of it or store it in a vault.

If you prefer a more convenient option, you can invest in gold-backed securities, such as gold ETFs, gold mutual funds, and stocks of gold miners and refiners. For example, you can invest in the VanEck Gold Miners Equity ETF (GDX) or the Fidelity Select Gold Portfolio Fund.

Some other options for investing in gold include gold futures contracts, which can be traded on exchanges like the Chicago Mercantile Exchange, and gold mining stocks, which can provide a more affordable way to invest in gold.

Investing in gold can be a smart move if you're looking to diversify your portfolio, as it can help improve the overall mix of your investments.

A small percentage of gold exposure can make a big difference in reducing risk and increasing potential returns.

For some investors, gold is seen as a way to increase its value over time, making it a potential long-term investment opportunity.

However, it's essential to consider your investing objectives and risk tolerance before making a decision.

You can buy gold through a variety of methods, each with its own benefits and considerations.

Buying gold online is a convenient option, with many retailers offering a range of gold coins, rounds, bars, and ingots. You can even buy smaller gold bars, ranging from half a gram up to 100 grams, in stores that specialize in numismatics, pawn shops, or some jewelry stores.

Some retailers offer discounts to military personnel and bulk buyers, making it a cost-effective option for those who can take advantage of these deals. However, be aware that sellers often mark up the price of physical gold from its current spot price, so you may end up paying more than the actual value of the gold.

If you prefer to buy gold directly from a reputable source, consider purchasing from the Royal Mint. You can create an account and purchase gold, silver, or platinum bullion immediately, with the option to have it delivered or store it in the Royal Mint's Vault.

The Royal Mint also offers a guaranteed buy-back service for gold stored in their Vault, providing a safe and secure way to invest in gold. You can even start saving in gold with as little as £25.00.

Another option is to use a Regular Gold Investment Plan, which allows you to buy gold regularly with minimum effort. You can set up a monthly automatic payment or standing order from your bank account, and the money will be used to purchase gold for your account automatically.

You can also store your gold in a secure vault, such as BullionVault's vault in Zurich, where it will be held safely until you're ready to sell or withdraw it.

Stocks can be a more affordable way to invest in gold, especially for those on a budget. You can buy individual shares in a stock, such as Newmont Corp. (NEM) or Barrick Gold Corp. (GOLD), which can be more accessible than purchasing physical gold.

Investing in gold mining stocks can be a good way to get started, as the price of gold often rises and mining companies see an increase in profits. This can be a more affordable option than investing in physical gold.

Look for well-established mining companies with a track record of success, such as those mentioned in the article section. Conduct thorough research before making any decisions, as investing in stocks carries inherent risks.

Setting up a regular investment plan is a great way to buy gold monthly. You can do this through BullionVault's Regular Gold Investment Plan, which allows you to buy gold regularly with minimum effort.

To get started, log in to your BullionVault account and switch on Auto-Invest in ACCOUNT > SETTINGS. This authorises BullionVault to use available money to buy bullion for your account at the Daily Price.

You can set up an automatic payment or standing order with your bank to make regular deposits every month to your BullionVault account. You can do this through your online banking or contact your bank directly, and be sure to check the banking fees that will apply each time.

All deposits to your BullionVault account must come from the same bank account, so make sure to use the same account for all your payments. You'll also need to quote your username as your payment reference with any deposits into BullionVault.

To give you an idea of what to expect, here are the minimum order sizes for a Daily Price purchase in different currencies:

Once you've set up your regular investment plan, you can sit back and let BullionVault do the rest. They'll use your available funds to buy gold at the Daily Price, and you'll receive your bullion in your account after two working days.

Buying gold monthly can be a great way to diversify your investment portfolio. Owning some gold alongside stocks and bonds is one way to shield yourself from dramatic losses.

Diversification aims to help protect investors from market downturns by spreading investments across different asset classes. Gold's price often has an inverse relationship with stock and bond prices, making it a potential hedge against market volatility.

However, it's essential to be mindful of the costs involved. BullionVault charges a transaction fee of 0.5% on buying and selling gold, which includes the premium charged by the market, physical allocation, vault delivery charges, and their commission.

BullionVault charges a transaction fee of 0.5% on buying and on selling gold at the Daily Price.

This fee includes the premium charged by the market, physical allocation, vault delivery charges, and their commission.

Daily Price orders placed in British Pounds or Euros incur an additional 0.3% currency-switching fee.

You'll also need to check the banking fees that will apply, including currency conversion charges if you're not depositing in US Dollars, British Pounds, or Euros.

Ongoing charges for storage, including insurance, are as normal with BullionVault.

Diversification is a smart way to shield your investments from dramatic losses. By owning a mix of different assets, you can reduce the risk of losing money.

Gold often has an inverse relationship with stock and bond prices, meaning its price can rally when stock prices fall. This was seen during the 2008 financial crisis when the S&P 500 fell 30% and gold prices rose by a similar amount.

Owning some gold alongside stocks and bonds is a good way to diversify your portfolio. Just remember that financial advisors typically recommend investing no more than 10% of your overall assets in gold or precious metals.

In 2022, the S&P 500 lost nearly 20%, but gold only dropped by -0.1% by year's end, beating many other asset classes. This shows that diversification can help you weather market downturns.