There is more than one way to invest in gold. The first option is to purchase gold bullion, which are gold bars produced by refiners in the range of one gram to 400 OZ’s.
Another way is to buy gold coins. The most popular gold coins are one oz coins such as the American Eagle, Canadian Maple Leaf, South African Krugerrand, and the Austrian Vienna Philharmonic. Gold coins are easy to keep and transport, and are very closely matched to the price of gold.
Numismatic coins are older coins that are more like collectibles than investment pieces, although they have a premium added to their value based on the gold included in the coins. Value is usually determined through an appraisal.
Gold certificates represent ownership of gold bullion stored by a financial institution. Owners must pay a fee to cover storage and insurance.
It’s also possible to trade a futures contract on one of the futures exchanges. This investment method is leveraged, in most cases. Gold options experience price movement more than real gold.
The purchase of gold mining stocks is another option. This involves stock ownership of a company traded on one of the exchanges. Of course, with this type of investment price movement depends on the price of gold and the position of the corporation. This leads to more price fluctuations.
It’s even possible to invest in gold by purchasing gold jewelry, which represents the largest consumption of gold annually. In developing economies, jewelry is a common method of accumulating savings.
The safest method of buying and owning gold is to invest in Exchange Traded Funds. This involves buying shares in a fund based on the current market price of gold.
Gold mutual funds allow investors to buy and own gold stocks with little risk. This method allows investors to diversify their gold stock portfolio and puts investment decisions in the hands of an experienced professional. There are many different types of portfolio management from which to select, and prices move faster than the price of gold.