What is the best way to invest in gold for beginners?

For beginners, gold ETFs like GLD or IAU offer the simplest entry point as they require no storage and provide excellent liquidity. Physical gold coins are another option if tangible assets are preferred.

How much of my portfolio should I allocate to gold?

Financial advisors typically recommend allocating 5-15% of your investment portfolio to gold, depending on risk tolerance. Allocation often increases toward the higher end during periods of high inflation or economic uncertainty.

What factors have the biggest impact on gold prices?

The most influential factors are U.S. dollar strength (inverse relationship), real interest rates, inflation rates, central bank policies, and geopolitical tensions.

Is physical gold better than paper gold investments like ETFs?

Neither is universally better. Physical gold provides ownership without counterparty risk but requires storage. Paper gold (ETFs) offers convenience and liquidity without storage hassles.

How do gold trading and forex trading compare for new traders?

Gold trading is generally less complex for new traders as it responds to fewer macroeconomic factors (USD, rates, risk) compared to the multiple currency relationships in forex. However, both offer leverage and distinct risks.