Real Estate

Should You Invest in Gold Stocks or Physical Gold?

Gold Stocks

Gold Stocks

Through every recession, there’s one constant that can pull people through. That constant is gold. It’s what makes it such an important asset.

Gold isn’t going anywhere anytime soon, so it’s a pretty safe investment. The question is, should you go with physical gold or gold stocks.

There are pros and cons of both options. For example, if you invest in stocks, you don’t actually own the gold, but it comes with a lower price tag than physical gold.

That’s only one thing to consider. Check out this guide to learn which gold investment option is best for your financial future.

Physical Gold Vs. Gold Stocks

So, what’s the real difference between physical gold and gold stocks? Physical gold is actual bars and coins that you can hold in your hands. The smaller the gold pieces, the more expensive they’re going to be due to how difficult it is to make them.

Many people call gold stocks paper gold. It functions pretty much like any other stocks you would invest in. You put money toward a company hoping they’ll make it big so you can make it big.

The difference is that you’ll be dumping your money in a company that only dabbles in gold and if the stock market crashes, your funds will be fine.

Pros and Cons

As we said in the beginning, there are pros and cons of both investment options. Gold stock is easy to buy and sell. If you buy coins from, you’ll have to find a way to store them.

You don’t have to find a place to put your stocks. Stocks are also a lot less expensive to invest in than physical coins. It’s risky to keep your gold on you at home.

If someone breaks in, they can steal your coins and bars. You can sell your gold, but it’s not a quick process. The other problem with investing in stocks is that you don’t actually own any gold.

If the stock market were to crash, you would be able to use your physical gold to get you through the tough times. Your gold stocks will be in limbo.


One thing that physical gold and gold stocks have in common is that there are several ways for you to invest in them. You can go the mining route or choose ETFs. You can also get a certificate that shows that you own a certain amount of gold stocks.

As far as physical gold goes, there are bars and coins. Again, coins are more expensive because they’re more difficult to prepare than bars.

Grow Your Investment Portfolio

Gold has been around since the beginning of time. That’s why investing in it is such a good way to build your portfolio. There are a million ways that you can get involved with this precious metal, but it boils down to physical gold and gold stocks. We hope that reading this article has helped you weigh the pros and cons of both options. For more tips that will allow you to protect your financial future, feel free to explore the rest of our blog.

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