What type of stock is gold?

Gold stocks are publicly traded investments that focus on gold. The SPDR Gold Shares (GLD) ETF, for example, contains physical gold and deposit receipts, and its price follows the price of physical bullion. The VanEck Vectors Gold Miners (GDX) ETF, on the other hand, is a passively managed fund that tracks an underlying basket of stocks of gold mining and refining companies. Gold stocks are public companies involved in the exploration, extraction and processing of mineral gold.

This page lists the main gold stocks ordered by market capitalization, including gold miners, gold producers and gold exploration companies. A gold mining stock represents a stock of a company that mines gold. It's a liquid investment that you can buy on a stock exchange like any other stock investment. If you're interested in gold stocks, here's a deeper analysis of some of the top gold stocks.

In addition to their nature as a store of value, gold coins can also have additional value as collectibles. This is especially true of gold coins minted in the United States before 1933 (which was the year gold coins stopped circulating in the U.S.) U.S.). If the stock market collapses, your investment won't be protected because you don't technically hold gold. However, there is much more at stake in terms of whether you should invest in physical gold or in gold stocks.

Investing in gold stocks avoids that risk, because buying stock insurance isn't particularly common. Either way, gold can be an excellent place to invest, as it is often used as a hedge against a struggling stock market: owning a physical asset such as gold can seem very attractive when the stock market is down. Investing in gold stocks is less expensive and offers more liquidity as a way to get involved with precious metals. Investing in gold ETFs and mutual funds can expose you to the long-term stability of gold while offering more liquidity than physical gold and more diversification than individual gold stocks.

Although in the short term it can be as volatile as stocks, in the very long term, gold has maintained its value remarkably well. Depending on your preferences and ability to assume risk, you can choose to invest in physical gold, gold stocks, gold ETFs and mutual funds or speculative futures and options contracts. Gold stocks work like other stocks; basically, you invest in companies that mine or hold gold on your behalf. Investing in the shares of companies that extract, refine and trade gold is a much simpler proposition than buying physical gold.

Also known as paper gold, gold stocks have a similar function to any other stock you would buy. You are investing in a company with the hope that they will succeed and your investment will worsen. Technically, gold certificates are not stocks, but they represent an investment in gold that does not include physical possession of gold. However, keep in mind that gold stocks don't necessarily move at the same pace as bullion prices, because mining companies succeed or fail based on their individual operating performance and the way they deploy their capital and generate profits.

Collector coins, such as South African Krugerrands, Canadian maple leaves and American golden eagles, are the most widely available type of gold coins.