Investing in gold was once seen as the province of governments, James Bond villains and survivalists preparing for a global catastrophe. But as traditional investments continue to realize ever lower yields, more and more millennials and home-based investors are looking to alternative investment options that combine those magical qualities of low risk with a high return.

Alternative Investment Strategies

While the concept of alternative investments sounds like a 21st century phenomenon, the two that spring first to mind are actually highly traditional. Surely, if you want a safe investment, what could be more secure than gold and property? No wonder so many people are exploring the buy to let market, as the residential property market remains buoyant.

Of course, the downside to property is it is highly illiquid. It might work well for retirees or those who are prepared to tie up a large sum of money for years, but where does that leave present day millennials who simply want a secure way to invest their ready cash? This is where the gold market can provide a solution that ticks all the boxes, offering a secure investment that can easily be converted to cash when required.

Going for gold

So are we seeing a 21st Century gold rush? It certainly looks that way. Gold is seen as a “safe haven” in times of financial turmoil and recent years have borne that out. As other markets crashed, the price of gold hit record highs in recent months, peaking at almost $2,000 per gram.

Amidst this ‘new gold rush’, many investors turn their attention to the importance of buying gold coins. A majority in particular opt to buy American eagle gold coins which have become a highly sought-after and trusted investment for those looking to add a stable and prestigious element to their portfolio. By choosing these specific coins, investors not only benefit from the gold’s inherent value but also enjoy the security of a coin minted and backed by the United States government.

Of course, there is no investment in the world where the value just keeps climbing forever, and since that peak, prices have settled around the $1,200 mark. This still shows a positive long-term trend, but goes to prove that even investing in gold is no guarantee against getting your fingers burned if you buy at the wrong time. In other words, prudent investors continually monitor market conditions and seek expert advice before making a decision. As the saying goes ‘timing is everything’.

Investment methods

In the past, investing in gold was prohibitively complicated. It was necessary to physically purchase gold coins or bars, which then led to the question of where to store them safely.

The possibility of using an online trading company to buy and sell gold as part of a broader investment portfolio is the single largest factor in making it a viable option for today’s busy but Internet-savvy generation of investors.

We are all taught from a young age not to put all our eggs in one basket, and that advice holds just as true when your eggs are made of gold.