From 4000 B.C. to today, one thing has remained consistent: the value of gold. Ancient civilizations used gold to create jewelry. China legalized squares of gold as currency.

Gold would be discovered in the U.S., creating the first U.S. gold rush in 1803. It would happen again in Alaska in 1898. No matter what time period or civilization, gold has value.

Odds are you’ve probably heard about gold investment by now. Maybe you’ve considered it yourself.

While no investment is without risk, gold can be a stable investment. Before you get started investing in gold, read these 5 tips.

1. Decide Your Gold Investments

First, determine what form of gold ownership you want. There are two broad forms of gold investment: physical gold and gold securities. Each has its own pros and cons.

Physical gold requires secure storage. That could be on-site at your home or possibly at the dealer’s location. The latter often costs more.

However, physical gold can be easily accessible, especially if stored at home. You will be required to keep it secured yourself, but the ability to look at and touch it yourself is satisfying for many people.

Gold securities such as ETFs don’t require any physical storage. They also make selling your gold much easier, since you aren’t required to go to a physical location or sell and ship a physical good.

An EFT is an exchange-traded fund. An ETF represents a “basket” of different stocks. These could include metal stocks such as gold, silver, and copper stocks.

Choosing a gold investment isn’t an either/or situation. You can choose to invest in both physical gold and gold securities.

2. Decide the Form

If buying physical gold, you need to determine what form is best for you. Bullion, coins, and jewelry are three forms.

Gold is frequently used in jewelry. The overall value will be determined by both the amount of gold in the jewelry and the craftsmanship. Gold jewelry is easily passed on to loved ones or resold.

Gold coins are popular collectibles. Government institutions such as the U.S. Mint, manufacture gold coins like the American Eagle coin. The value is determined by the rarity of the coin and its gold content.

Gold coins are often minted in small sizes of an ounce or less. This makes them a portable investment.

Finally, there’s gold bullion. It’s often thought of in the traditional bar form factor. However, large gold bars are heavy. Fortunately, there are smaller bars.

3. Understand the Risks

Gold is an investment, and like all investments, there is a level of risk. If you have physical gold, it can be stolen.

Gold prices can be volatile. There may be extra costs associated with buying, storing, and selling gold.

4. Use It to Diversify

That brings us to our next tip: use gold to diversify your investments. Should you invest only in gold? No, but it can be part of a well-rounded portfolio.

5. Find a Reputable Buyer

It can be convenient to buy gold online, but make sure you are purchasing gold from a reputable dealer. Look for a dealer that mentions the gold caratage of what you are buying. They should also have affordable shipping and a good selection.

You Can Start Investing in Gold Today

Ready to start investing in gold? If you follow these investing tips you can start investing in precious metals.

If you’re looking for more investment tips and ways to invest to ensure a better financial future for yourself, check out the rest of our site. There are more great posts on finances waiting for you!