Gold is an increasingly popular investment in times of economic downturn or declining value of national currencies. Because those seeking to invest in gold sometimes do so because they want a hedge against the national economy, finding gold investments abroad might make sense in some cases. It's important to be familiar with various types of gold investments as well as gold-rich regions of the world before you begin investing.
- Skill level:
- Moderately Easy
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Things you need
- Internet access
Choose an appropriate investment. There are several ways in which to invest in gold. One way is physical ownership and possession. Buying physical gold internationally would likely involve purchasing a gold-minted national currency, such as the South African Krugerrand, or buying a reliably minted gold bar, such as the government of Switzerland's Suisse bar.
Another popular way to invest in the gold market is through exchange-traded funds (EFTs), which trade on the stock market. This does not mean that you must convert dollars to foreign currency and invest in foreign stock markets, as most international ETFs, according to goldworld.com, can be bought on the New York stock exchange.
You can also invest in gold stored in overseas vaults by purchasing international gold certificates. One prominent example of a reputable gold certificate issuer is Australia's Perth mint.
Identify a promising, politically stable region. When investing abroad, political atmosphere is always a consideration. You may be choosing to buy gold abroad because you do not think the political atmosphere in the U.S. is conducive to safe gold investment, so it would be a mistake to choose a place even more hostile to gold ownership.
China is the world's number one gold producer, according to "Mining Weekly," but the authoritarian nature of its government might be a turn-off to potential investors. For this reason, Australia, the second-largest producer, is a common choice for Americans, as is Canada, which might be a prudent choice given its proximity to the U.S.
Research companies providing the investment of interest. Once you have the type of investment and potential regions determined, this will narrow the field of available companies. From this field, you should look at factors such as longevity, which indicates reliability, and positive reviews from investment sites.
Purchase the gold. The method will vary depending on the type of purchase you make. If it's an EFT or a mining stock, you will use a broker or online money market account to complete the transaction, as you would with any other stock. If you are buying a certificate or physical gold, this will usually involve an electronic payment by credit card, wire transfer or third-party payment system such as PayPal.
Tips and warnings
- Make sure the payment is secure. PayPal is an excellent resource to help broker fair transactions.
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