Investing In Gold Vs. Stocks, Which One Is The Winner?

When it is about creating a portfolio, a big question arises in the mind of the most investors-where should they invest- whether it should be asset classes or on the nature of asset such as financial or physical. When the matter of investing in any physical assets (like gold and real estate) come, certain specific concerns occur in the mind since they have their own positive and negative aspects. On the other hand, investing in financial assets such as stocks, mutual funds and bonds have their own pluses and minuses. In most of the cases, investors find themselves in the fix which is better for investment- gold or stocks. Let’s have some glimpses on both of these assets to know who the winner is.

Investing in Gold

Investing in gold is often considered as safe investment though the scenario of gold price doesn’t always remains on high. When physical gold is considered as one of the most popular ways for investing in gold, many people are considering 401k Gold IRA rollover as their retirement investment plan. Although there are certain connection with political and emotional swings on the volatile market to the price of gold, but if you compared to the days of swings with the long-term growth of gold price, the former seems trifle. Therefore, people prefer to invest gold IRA as their retirement plans.

Investing in Stocks

In today’s digital market, investing in stocks is considered safer in comparison to investing in physical assets, as there is lack of safety issues since these are in the electronic forms. The ease of selling stocks results more liquidity and the process is quite simple once you know all the pros and cons of stock markets.

Stocks Market is Rallying Since 2009

Presently stocks are rallying since 2009 because the rising of the Dow Jones up 176% since 2009. But this rally is soon going to be over as the trading range of the Dow Jones ranging between 17,500 and 18,300 average for every month now and stocks are already overpriced indicated by the stock valuation tools. The growth of corporate earnings has already stopped unless the Federal Reserve further announces that they are again going to print money.

Gold Up To Now

Alternatively, gold presents an opposite holds. Gold bullion touched its all-time highest price of 1,900 U.S. an ounce in 2011 and since then the prices are down by 37%. In 2014, gold bullion was within the trading range of $1,300 to $1,150 an ounce. That means that when stocks are rising on the top, the gold price is getting down at the bottom.

After beating of the gold prices, the gold producers have sliced down their exploration from the mines which indicates the contracting of gold supply. On the other hand, the demand of gold is always on the high.

Who Is The Winner?

Now the final question is-which option is more beneficial for investment- overpriced stocks or oversold gold? Following the Dow Jones U.S. Gold Mining Index of 2015, it shows 34% growth where the stock market may be down the road from leading position in nest 6 to 12 months. Therefore, it indicates higher gold price is waiting in future. Next up to you- the investors.

Deciding on Investing in Gold Coins vs. Gold Bars

Whether you are a novice or a veteran in buying gold, the dilemma of investing in gold coins vs gold bars always requires some thought and deep consideration. Number of reasons and factors contribute to that decision including your personal circumstances and goals. Some of the key factors to consider are –


This refers to additional costs apart from the gold price and encompasses manufacturing costs, packaging and handling, insurance and delivery. This amount varies from company to company in an effort to remain competitive. However, one common factor prevails. Generally gold bars have lower premiums than gold coins. This is because they have a larger unit size which implies lower manufacturing costs.


Majority invest in gold for creating a diverse and rich wealth portfolio as well as for getting maximum returns on their investments. Gold bars tend to give best value when buying but not when selling. In contrast smaller gold bars below or equal to 100 gms or gold coins offer greater flexibility and returns when selling. They facilitate part selling which can raise some quick cash when required and sometimes give better returns on investment.

Other pros and cons of gold coins investment

Gold coins enjoy a legal tender status and are more easily collectible than gold bars. They are also available as junk coins which can sometimes be procured at a price lower than the spot price. They also have a higher liquidity, helping any investor raise instant cash in any financial emergency situation.

Other pros and cons of gold bars investment

Comparatively, these are easy to store and transfer as they can simply be stacked. With the lowest premium any time over the spot price, it also helps any investor to build their financial portfolio pretty quickly. However, during any financial crisis, larger bars are extremely difficult to barter and raise liquid cash fast.


Why You Should Make Gold IRA Investment?

One of the biggest reasons why people invest is because they want to safeguard their financial interests during rainy days, especially from domestic or global financial recession. However, one should have a methodical approach towards investment, keeping in mind the long term goals, market volatility, financial requirements, income, and other relevant and related parameters.

Gold IRA investment

A gold IRA rollover have become a highly popular option in the last few years, because it is a safe way to invest in gold, without actually having to take the burden of safeguarding the physical gold.  Even though the price of the gold also fluctuates and there is a reasonable amount of volatility attached to it, it has a proven track record of being a fruitful investment.

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Gold IRA investment

is also very helpful in diversifying the investment portfolio, and provides it solid stability due to the strength of the pricing of gold. It also provides owner with the strength of liquidity, which can be really useful and is highly needed in any investment portfolio. Apart from giving out considerable amount of returns in the long run, gold IRA investments ensures long term wealth creation in a consistent manner.