Gold is usually investors’ go-to asset when economic challenges or global issues disrupt the markets. With surging prices and the markets facing uncertainty, some investors seek a safe investment with a history of excellent gains, such as gold.

So if you plan to own gold, you don’t need to use your own closet for that. Instead, what you need to store your gold is an investment account.

What You Need to Know About Investing in Gold

Gold can’t offer you the means to significant profit. Looking at the last five years, gold prices have climbed about 36%, while the S&P 500 has gained 104% in the same period.

The hype surrounding gold is not due to its potential for returns. Rather, it’s because of the yellow metal’s ability to serve as a safe haven from inflation and severe market declines. For example, the US 2007-2008 bear market saw the general stock market fall 33%, while gold only recorded a 2% loss.

Still, gold prices have a volatile nature, making gold an investment that is not 100% safe. You can even build a well-diversified portfolio without gold. However, if you seek to put some of your money into gold, do it in a way that it only covers a small percentage of your investments.

3 Ways to Own Physical Gold

Bullion/Bars

Better known as bullion, gold bars are an excellent option if you intend to invest in gold. Investors can buy bullion per gram or ounce, and the bar’s purity, manufacturer, and weight should be indicated on its top face.

Purity, in particular, is crucial to gold, as investment-grade gold bars need to be at least 99.5% pure. That becomes more important if you’re looking to keep your bullion in a gold individual retirement account (IRA). Bars with lower gold content cannot be stored in an IRA, except for a pre-approved gold coin.

Bullion is available to purchase from dealers, individual sellers, or online. Note that there may be delivery charges and insurance fees involved to ensure the safe transport of your gold bars.

Coins

Collector’s item gold coins such as the American Eagles and Maple Leafs will require you to pay a premium over what you would pay for the same number of gold bars you’re holding.

Additionally, gold coins usually have less purity than bullion and are sold by dealers, pawnshops, and reliable individual sellers.

If you decide to buy gold coins online, make sure it’s an authorized dealer included in the US Mint’s list. You would not want to pay for fakes or gold with a lower content than what you were told, regardless of whether you plan to purchase gold coins directly or online.

Jewelry

Gold jewelry, especially the antique ones with higher purity, offers investors another way to invest in the precious yellow metal. However, like gold coins, you may need to pay additional fees for the amount of gold you’re actually buying, depending on the producer.

Furthermore, manufacturers tend to mix gold with other metals – i.e., alloying – to make their jewelry last longer or adjust their colors.

You also need to confirm whether the individual you’re purchasing gold jewelry from is legit. For example, jewelers part of the Jewelers of America is bound by a code of conduct that requires them to practice honesty and transparency on the makeup of their jewelry.

Lastly, if you’re looking to resell your gold, you need to gather as much certification as possible to prove its quality.