The best ways to buy gold
Gold has recently shot up the ranks as one of the best and
safest investments to make this year. With the gold price
expected to reach at least $1,000 per troy ounce before the
decade is out we can see why. These predictions have not been
made by some wild gold fanatics but by industry leaders who also
predicted that gold would be trading above the $500 per ounce
mark in 2005. The gold price today? $553 per troy ounce and set
to soar. $1,000 per ounce is not even an upper limit. Other
market gurus see it going to $2,000 and even $3,000 per troy
ounce. Gold bulls will be laughing all the way to the bank.
If the price predictions have caught your attention, your next
question is probably - How exactly do I invest in the precious
yellow metal? There are a number of ways to get involved, and
these are explained below.
Gold Accounts
It is possible for investors to have open gold accounts with
major banks. In the past this has not been easy, as there is
little tradition of banks offering gold accounts and dealing
facilities. Further, entry level transactions have been far too
expensive for the small investor, who would often have to stump
up hundreds of thousands of dollars or pounds. Accounts with
banks are usually only available with "private bankers" for
individuals with a few million to invest.
It has become much easier since. There are a number of companies
now offering the opportunity to buy gold cheaply and safely over
the Internet. You can start from as little as one gram of gold
(costing about $18) and this will be stored on some of the
safest vaults in the world. You will own the gold outright and
can even take delivery of it.
Gold Futures
This is a highly professional market, but is more for the
speculator than the investor. Gold futures should only be
considered by experienced investors. While the returns on gold
futures can be massive, so can the losses if you don't know when
to cut loose.
Gold Mining Shares
Gold mining shares are probably the best way to make a paper
investment in gold. The theory goes that when gold prices and
demand increase, gold mining share prices will follow the trend.
Mining shares in general can be quite risky as shares are always
exposed to market sentiment and their value is also driven by
the individuals running the company.
Gold Bars
Taking physical delivery of your gold is always a safe way of
investing in gold. Gold bars are one method of achieving this.
One must be aware though that when gold is removed from the
professional market vaults, its integrity is no longer
guaranteed and it will not fetch its maximum price when it is
sold.
Gold Coins
Gold coins are more convenient than bars, and can often be
bought for lower premiums than bars. They are however more
expensive than buying gold over the Internet from the
professional market. Insurance costs are also something to
consider when taking physical delivery of your gold. There is a
large selection of coins available and rare collectible coins
can often increase dramatically in price.