Investing is a rewarding business, but it can also be risky. Inflation over traditional stocks and bonds can change by the hour and potentially lower your investment. Something investors look to as a hedge against inflation is gold investment. Although the price of gold can rise and fall, there’s a modern way to invest in gold that doesn’t involve owning a physical brick of gold.
It’s called exchange-traded funds (ETF), and it’s a low-cost and lower-risk option that holds gold as an underlying asset. There are many benefits to this form of gold investment, and companies are enticing online investors with sign-up bonuses to help them get the most out of their investment.
Here’s what seniors should know about investing in gold online.
Why People Are Switching to Gold ETFs
Gone are the days when you need to own a bullion to invest in gold. Now, you can choose gold ETFs. This is an exchange-traded fund where the principal asset is gold. This doesn’t mean you own gold, though. Instead, you’re investing in individual stocks that are backed by the value of gold.
Gold ETFs give you the opportunity to gain wealth from potential fluctuations of gold or reduce your risk of losing money if you have other investments in place. There are different types of gold ETFs to invest in such as bullion, gold mining, refining ore and bullion. Examining how each ETF performs in the market can help you decide which one is best to invest in.
Since you don’t own gold with ETFs, you get to skip the extra costs required with physical gold investing such as storage, transaction fees and insurance. Your investment acts similar to stocks, since the value can quickly rise and fall. Investors do have to pay a small commission for buying and selling an ETF, but it is often lower than the cost of physical gold. You are taxed when your ETF is sold, and that percentage will depend on how long the ETF was held.
Another perk to gold ETFs is they’re more accessible. Online brokers specialize in ETF stocks, which means you can easily buy, monitor and sell your stock to participate in the market. And many provide signup bonuses for new investors, which can increase your earnings.
How to Get a Sign Up Bonus to Invest in Gold
It’s easy to get started with gold ETF investments. All you have to do is find an online brokerage, sign up and choose your investments. When new customers sign up with certain brokerages, you can receive rewards for transferring or depositing money into a new account.
Investing a certain amount of money can qualify you for certain amounts of cash bonuses. The amount of bonus cash you receive will depend on each broker and what its specific incentive. After getting this bonus, you’ll be able to get started on your ETF investment portfolio and secure your hedge against inflation.
Here are some brokerages offering deals for new sign-ups.
The Offer: Receive up to $2,500 bonus cash
E-Trade gives its investors a variety of support and ETF options. You will pay $0 on ETF trades and only 65 cents per options contract. You can receive $25 to $2,500 cash credit by opening an account with E-Trade and kickstart your investment portfolio.
The Offer: Commission-free trading on all ETFs
Firstrade is an easy platform for you to diversify your investment and reduce the risk of loss. This self-directed form of investing simplifies the process and puts you in control of your financial goals. After opening an account, you can skip the ETF fees and trade for free instead.
The Offer: Receive up to $3,500 bonus cash
With Ally Invest, you can get commission free trading on certain ETFs. They provide a wide selection of markets to invest in so you can diversify your portfolio and expand your return. Plus, you can earn anywhere from $50 to $3,500 in bonus cash simply by depositing or transferring money into your account.
Other Ways to Invest in Gold
Despite being the most flexible, ETFs aren’t your only option to invest in gold. There are quite a few other options available. These include:
- Gold Bullion: The investment in physical gold bars and/or coins. Can be rather volatile as making a profit is dependent on gold’s value rising.
- Gold Futures: The investment in the future value of gold. Can make a lot of money easily if the market moves in your favor. However, it’s just as easy to loss that money if the market moves against your prediction.
- Mining Stocks: The investment in businesses that mine gold. Can profit from the rise in the value of gold and the increase in production at the mine. Just be careful as stocks, in general, are highly volatile.
Compare Investment Offers Online
If you’re looking to invest your money, gold ETFs are a good way to go. It allows you to put your dollars in the gold market backed by its value instead of having to own physical bullion. It’s less risky and lower in costs, since you don’t have to pay for shipping, insurance or storage costs of physical gold.
You have options when it comes to starting your ETF investment. Online brokerages are giving new signups incentives and bonus offers simply by choosing to invest with the platform. You could end up receiving bonus money or getting waived fees associated with placing trades on your ETF.
Research and compare your options before choosing an online brokerage. Check out the special offers for new investors and see which service will give you the most savings or opportunity to grow your investments. Everything is online, giving you the freedom of controlling your financial future and the opportunity to secure your hedge against inflation.