Investing in Gold - Invest in Gold

Investing in Gold
Of all the precious metals in the world, it is gold that has long been regarded as a symbol of wealth and power. A much sought after commodity throughout history, gold has properties that not too many other precious metals share. It is, for one, the most malleable and ductile precious metal of all. This very property alone makes it perfect for a number of applications, from coinage to industry, as well as for electronics and even medicine. Then there’s its unique luster, an attractiveness that can only be fully appreciated when the metal is transformed into beautiful pieces of jewelry.

It is all this that makes gold a wise and great investment. Gold, after all, is an easily exchangeable or tradable commodity. What’s more, the price of gold has risen dramatically over the years, which explains the steadily growing number of people trying to get into the gold buying and selling business. If you are one of those people who are interested, there are a number of investment vehicles that you can opt for.

For those who prefer to enter the business in the most traditional manner, buying gold bullion bars is the way to go. Gold bars are quite popular among investors because of the ease at which it can be bought or sold through many major banks as well as commodity brokers. Commonly available weights are 10-oz gold bars, 1-oz gold bars and 100-gram gold bars. These bars have a standardized purity of between .995 and.999%.

Another very popular way of investing in gold is buying gold bullion coins. With gold coins, buyers will actually get to physically hold and keep these gold coins in close proximity. Typically priced according to their weight, these gold coins need to be stored in a very secure place, and it is imperative that owners of gold coins make the necessary arrangements, whether it’s setting up their own storage space or paying for offsite storage.

However, if you think that storing any actual gold product would be too much of an inconvenience for you, maybe you should think about investing in gold exchange-traded funds (GETFs) instead. These GETFs, which were launched in Australia in 2003, can be traded in all major stock exchanges around the world in very much the same way that shares are traded. This method of buying and selling gold, however, entails various fees for such services as storage, insurance, and management. This means that over time, these certificates will tend to decline.

Investing in gold certificates is also another option for those who find the idea of taking possession of the actual physical gold product bothersome. In this method, the seller will issue the buyer a certificate of ownership representing the actual amount of gold purchased. It is interesting to note that from 1882 to 1933, gold certificates were used in the United States as a form of paper currency. Today, only gold pool programs in the United States and Australia, and Swiss and German banks continue issuing gold certificates.

A less popular gold investment vehicle is buying stock in mining companies. While it may not represent ownership of actual gold, being a stockholder means getting a share of the company’s profits when the price of gold rises. But a rise in gold price doesn’t automatically mean a rise in share price, as many factors have to be taken into consideration. Many investors consider this method as high risk and volatile, which is why it is the least used vehicle for gold investors.

When investing in gold, consulting an experienced seller or broker is of utmost importance, as they are the people most qualified to help you choose the right options. Just make certain what your goals are, whether your investment strategy is for the long term, or if you are in the business only for short term gain, so your broker can readily identify the right investment path for you.