Investing in Gold

There is no secret that the economic world is in shambles today and people are looking for any good investment idea they can find to build a proper nest egg. The traditional methods of 401K plans, blue chip stocks, and savings accounts have failed for many of those savvy retirement investors. However, there is one method that is as close to a guarantee of future solvency as it gets. That method is the purchase of gold for later resale.

Gold and precious metal investing is on the rise and many investors are seeking information on the different options which may be available to them. Here are some of the vehicles you can use for buying gold as an investment.

Gold is one of the most popular precious metals for investment today. Historically, gold has remained a measure of wealth as well as the medium of exchange for many years. It is more than just a commodity; it is unofficially a currency used all over the world. Central banks around the world use gold to backup their respective currencies.

Gold can be used as an investment for two main reasons. Firstly, investors buy gold in order to benefit from rising gold prices. Secondly, investing in gold can be used as a hedging strategy against financial downturns or crisis.

You can choose :

Gold Coins

Gold bullion coins are a very popular way to buy gold. Buyers who are looking to make an investment they can actually take possession of and hold should choose gold coins. They are priced according to their weight, type, and rarity. If you choose this option you will need to consider the storage and security of these items since you will have the physical gold on premises. If storing securely is not an option you can pay for offsite storage. Many sellers offer this option for a minimal fee that is based on the value of your gold.

Gold Certificates

Gold certificates are another option of buying gold bullion without taking possession of the actual product. The seller will issue you a certificate of ownership representing the amount of gold purchased.

Gold Bars

Gold bullion bars are the most traditional method for buying gold and can be purchased through many banks, commodity brokers, and gold bullion sellers. These bars come in various weights with the most common being the 10 oz gold bullion bar. The purity of these bars is standardized between.995 and.999% purity. The largest of gold bars are the preferred investment vehicle for countries who purchase gold in large quantities.

ETF (Exchange-Traded Funds)

ETFs were developed in 2003 as a way to invest and trade the commodity without having the hassle of storing the actual product. Gold EFTs are traded on the major stock exchanges throughout the world and offer the investor and easy way to gain the precious metal in a more traditional trading atmosphere. It is important to know the various fees involved in this method of buying and selling gold as the certificates tend to decline over time due to broker and other associated fees.

Mining Companies

One final and non-direct way of investing in gold and precious metals is through the purchase of stock in mining companies. As gold rises the company's profits will also rise and those profits are passed onto the shareholder. This is often the least used method of gold investors as there are many factors to consider when choosing a good company.