- 1). Create an account with an online trading firm. If you are going to invest in gold or oil, you will inevitably need an account with which to trade gold/oil securities. There are many to choose from online, and conducting a query on a major search engine will yield lots of results. Do some research on what each has to offer and how much each charges for commission, and choose the brokerage that best fits your needs.
- 2). Choose how you want to invest in gold. There are two main ways to do this: buy certified gold bars or currency, or buy securities of an ETF (exchange traded fund) that specializes in gold investment. The advantage of an ETF is that it's backed by the Securities and Exchange Commission. Also, ETF's are comprised of numerous companies/securities and are therefore safer than investing in one entity at a time. Note that gold ETF's will not be equal to the current price per ounce of gold, but rather their value will move at the same rate as the value of gold.
- 3). Decide whether or not gold ETF's are right for you. If you want a more tangible investment in gold, then buy gold bars or currency. Most brokerage accounts make this service available, but it may be easier to buy locally or from a reputable auction website. It is very important that the gold you buy is certified by a government or commission. Be sure to store your gold in a safe-deposit box or other secure location.
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Oil Rigoil rig at sunset image by Alan James from Fotolia.com
Decide how you want to invest in oil. There are two ways of doing this also: buying oil futures, or buying common stock of oil companies or oil ETF's. Oil futures are securities that are valued based on the estimated future price of oil at that time. So, if you think oil is going to rise in value, you can buy a future's contract that grants you the right to buy oil at present value and then sell it at a later time. - 5). Research the oil ETF or company, find the ticker symbol, and purchase the security via your brokerage account. "USO", or United States Oil, is a very popular oil ETF. Note that oil is priced by the value of a "crude barrel" and oil ETF's move at the same rate as a barrel of oil, but do not necessarily trade at an equal price.
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