Investing in Gold Without Storing It

Most people think of gold in terms of physical bars and coins; however, keeping gold physically stored can be costly and subject to theft, especially when stored in safety deposit boxes at banks or vaults.

There are various ways to invest in gold without needing to physically own or store its physical form, including investing in mutual funds or exchange traded funds that track gold prices, trading futures contracts or purchasing shares of mining companies.

Exchange Traded Commodities

Investors can incorporate gold into their portfolio in numerous ways. Some investors choose physical gold coins and bars, though this approach carries with it markup fees, storage fees, and other charges.

Another way to invest in gold without owning it physically is through buying shares of a fund that tracks the price of gold, such as one listed on an exchange and available through brokerage accounts. Futures or options contracts also provide opportunities; these should only be undertaken by experienced investors.

Exchange Traded Funds

Some investors find incorporating small amounts of gold exposure can help diversify their portfolio, but choosing which form of investment may best meet their needs requires taking into account both their investing objectives and risk appetite.

Large investors often invest in physical gold bullion coins and bars; however, due to premiums and storage fees this option can be more costly than buying digital or paper gold bullion.

For an easier and more liquid approach to investing in gold, stocks that produce or mine it may offer some leverage and diversification benefits.

Exchange Traded Options

Investors looking for additional ways to gain exposure to gold can purchase not only physical gold (in the form of coins, bars or jewelry) but also financial investments linked to it, including ETFs, mutual funds and futures contracts.

Physical gold investments require expensive storage and insuring costs, making them best suited to investors with larger capital reserves. Furthermore, physical gold does not produce cash flow so should only be included in portfolios in small quantities.

Gold can add diversification and protection from inflation to your portfolio, but understanding what drives its price before buying is key.

Futures Contracts

Futures contracts allow you to buy or sell physical gold at a predetermined price at an agreed future date and time. While such arrangements can be complex and more suitable for experienced investors than simpler contracts.

Investors looking for gold-related investments without physically owning it have other options, including buying shares in exchange traded funds and mutual funds that track gold’s price or contain gold mining stocks, tradable receipts backed by vaulted gold, coins or bullion. Investing in physical gold comes with additional costs such as storage fees and theft risk; investing through non-physical gold may offer safer returns.

Mutual Funds

Gold investments may provide diversification against risk in investment portfolios, though its use should be carefully considered in relation to your goals and any investment strategy chosen.

Physical gold requires storage and insurance costs that will decrease returns significantly, along with transaction fees and capital gains taxes to consider.

Before investing in gold, make sure to seek professional financial advice from advisors in your local area. SmartAsset’s free tool connects users with local advisors that can provide guidance.

Shares of Mining Companies

When investing in gold, there are various strategies available. You could purchase physical coins, bullion or jewelry; invest directly through futures contracts; or buy shares in mining companies producing gold. But before making any decisions about investments in this sector, it’s essential that you understand all of its variables that influence its price and any possible returns.

Example: Purchasing gold bullion gives you only exposure to commodity price volatility; while mining stocks provide greater exposure across a range of factors. Furthermore, many mining companies pay dividends that provide both capital gains and income streams simultaneously.


Many investors choose gold as they believe its value will remain intact during times of economic instability or disaster, yet adding physical gold can increase costs and risks that reduce returns.

Gold investments can be purchased directly from dealers in the form of bullion bars or coins; however, finding reliable sellers may prove challenging and associated fees and premiums can quickly accumulate.

Jewelry is an irreplaceable investment that must be stored safely. Unfortunately, this can be costly whether stored at home or paid for through a safe deposit box at a bank.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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