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The best ways to buy gold
By
Martin John
Gold has recently shot up the ranks as one of the best and safest investments to make this year. With the 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 fanatics but by industry leaders who also predicted that would be trading above the $500 per ounce mark in 2005. The 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 accounts with major banks. In the past this has not been easy, as there is little tradition of banks offering
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 cheaply and safely over the Internet. You can start from as little as one gram of (costing about $18) and this will be stored on some of the safest vaults in the world. You will own the 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 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 prices and demand increase, 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 is always a safe way of investing in gold. Gold bars are one method of achieving this. One must be aware though that when 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 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.
Martin John resides in London, United Kingdom and has a background in investment banking and financial services. http://www.buy-sell-gold.com/
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