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Ways to invest in gold
Gold is viewed by many as the ultimate single asset of value. The allure of gold stems from the fact that it has proven to be a hedge against inflation; safety in time of the geopolitical risk of war and terrorism; protection against currency devaluation; portfolio diversification and relative risk free speculation in a bull market. Gold also provides protection against inflation, and is the most effective protection of personal purchasing power.
When you are considering buying gold your motivation is fundamental in what form of gold you should buy. Are you investing for the short, medium or long term? Do you want to speculate to accumulate or play safe and invest for the future? Many investors who buy gold as a long term investment see gold as a stable investment as historically its value has generally appreciated over time. Additionally gold performs extremely well during any global political or economic unrest. Are you considering buying gold as a form of financial insurance or are you in it for the short haul as a speculative investment?
Considerations:
- Costs-initial financial outlay and annual fees
- Easy access to your investments
- Counter party risk (banks, funds, trustees etc)
Ways to invest in Gold
There are many ways to invest in gold either 'physical' or 'paper' gold:
| Risk |
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| Gold Type |
Physical |
Digital |
ETF's |
Speculation |
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| Gold Products |
Bars
Coins |
Pooled |
GETF's
COMEX |
Futures
Options
Mutual Funds
Mining Shares |
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| Risk beyond metal |
No |
No |
Yes |
Yes |
| Ownership |
Allocated |
Unallocated |
Unallocated |
Unallocated |
| Deliverability |
Deliverable |
Undeliverable |
Undeliverable |
Undeliverable |
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Investing in gold
The intrinsic appeal of gold has made it desirable the world over. Its value plays a significant role in the world's economy making it one of the most robust and secure investments on the market. When you choose to buy gold you are safe in the knowledge that you are purchasing an investment that remains strong at times of economic uncertainty and geopolitical instability.
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Owning a diverse portfolio of a wide range of assets makes perfect financial sense. Exposure to physical gold and gold related products is valuable as they provide a hedge against instability in the market. Gold is a universal currency and is an excellent form of financial insurance. In addition gold is a solid way of preserving wealth by passing it down through the generations.
A diverse portfolio may include a proportion of paper gold, in the form of ETF's, Certificates and gold futures and physical gold, such as gold bullion bars and coins. Gold bars are a popular form of investment not only with central banks and governments but with individual investors too. Gold coins offer great investment potential and in addition are desirable by collectors due to the high resale value for coveted gold coins.
So whether you are buying gold to save, invest or speculate, take great consideration in your motivation to buy gold, before you decide on what type of gold to purchase. Related article: Gold as both Investment & Crisis Insurance.
Disclaimer:
The information in this website article has been obtained from sources which we believe to be reliable. We do not endorse any investment providers mentioned in this article. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this website article does so at their own risk. Recommendations in this website article may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate.