There are different ways of investing in gold and this really depends on what you can afford. Gold investment is a very wise thing to do. Coins, bars and exchange traded funds are different ways of gold investments. Gold bars are the most traditional way of investing. These can be bought and sold in major banks over the counter. Bars are accessible in several sizes.
We can hold these bars directly by keeping it to ourselves or by keeping it in a vault on our behalf. Coin is another way of investing. It is a popular way of holding gold. Bullion coins are priced according to its weight plus premium. Most people invest in gold coins because it’s less expensive and easy to store.
Gold exchange traded funds are traded like shares. These are fully backed by gold which is deposited and insured. The account of gold is managed by buying and selling gold in the open market. These ways reflect an easy way to gain exposure to the gold price without inconvenience. Small commission is charged for trading in gold funds. Economies of scale, liquidity, and ease of buying and selling of these funds make this method a very easy method of investing. These gold investments are a very popular method.
Having gold accounts is another gold investments method. Gold money is a digital gold currency provider. We can have these accounts too instead of having to keep it physically. Derivatives are another popular way of investing in gold. Derivatives such as gold forwards, futures and options can be used every where. In the US gold futures are mainly traded on the New York Commodities Exchange. It can be traded else where too.
Mining companies do not represent gold but they are shares in gold mining companies. For instance if gold prices rise hen profit of the gold mining company might rise and then the value of share will also increase. Unlike gold bullion, unhedged gold shares are regarded as extremely volatile and risky.
The intensification of gold mining profits during times of rising prices can cause gold rush in mining industry. To decrease this volatility many mining companies hedge the gold prices. These are different ways if investing in gold. We can store them or keep them in the bank. During crisis this asset helps us and in a way keeps us out of any monetary crisis. We can choose any of the above methods depending on what best suits us or our gold portfolio.