Gold As An Investment - 6 Ways Of Investing In Gold

Feb. 3, 2011 - PRLog -- Gold is like three of the other precious metals (silver, palladium, and platinum) in terms of being regarded as an investment commodity. In reality, this precious metal has been used as a form of currency and a store of asset value for over four centuries. Investing in gold is a way of protecting against crises that may be brought about by economic or political instability or by social unrest.

Gold bullion coins continue their price climb along with corresponding silver prices and the increasing demands for gold by traders. Gold coins and silver coins provide an excellent way to protect your money and also allow you to invest in something very real and solid; gold coins and silver coins can hold their values through eroding monetary and political conditions. Now is one of the best times in history to invest in silver dollar values with gold bullion coins and silver dollars. Visit http://silver-dollar-values.com for more gold and silver tips.  

There are at least six ways of investing in gold:

Buying gold coins:

This is the most popular way of investing in gold. Gold bullion coins are typically priced based on their weight; a premium is added to the gold spot price. Gold coins may be bought or sold over the counter in most Swiss banks and on the Internet from reputable dealers such as Kitco.com.

Buying gold bars:

This is the most traditional way of investing in gold. As in gold bullion coins, bullion gold bars can be bought or sold over the counter in most Swiss banks, as well as in major banks in Liechtenstein and Austria. There also are bullion dealers that provide this same kind of service. Gold bars however are becoming less and less an option among investors due to the difficulties (in the verification process, transportation, and storage) associated with them.

Opening a gold account:

Most banks in Switzerland offer Gold accounts. Here, gold can be bought or sold in much the same way foreign currencies are dealt. A gold account is backed either through non-fungible (allocated) gold storage or pooled (unallocated) storage. Visit http://silver-dollar-values.com for more gold and silver tips.  

Owning a gold certificate:

A gold investor may opt to hold on to a gold certificate rather than store the physical gold bullion. The gold certificate allows the investor to buy and sell the security and do away with the many difficulties and expenses associated with the actual gold's transfer.

Trading in Gold Exchange-Traded Funds (GETFs):

Trading in GETFs is like trading shares in, say, the New York Stock Exchange or the London Stock Exchange. Gold Bullion Securities, the first GETF introduced (in 2003, on the Australian Stock Exchange), stood for 1/10 of an ounce of gold. GETFs are a good means of gaining exposure to the price of gold, minus the inconvenience of storage. Trading in GETFs involves payment of commission and storage fee (charged on an annual basis). The expenses incurred in relation to the handling of the fund are charged through the selling of a certain amount of the gold as represented by the certificate. Over time, the amount of gold in the certificate, as may be expected, decreases.

Entering in a Contract For Difference (CFD):

Some of the noted financial services firms, especially those in the United Kingdom, provide Contract for Difference (CFD). In this gold investment vehicle, two parties (a "buyer" and a "seller") enter into a contract, in which the seller agrees to pay the buyer the difference between the current value of gold and its value at contract time. In case the difference is negative, the seller receives payment instead from the buyer. A CFD, therefore, allows an investor to take advantage of long or short positions, enabling them to speculate on these markets.

Personally I prefer to buy gold bullion coins and hold them myself so I know they are safe.  Gold prices and Silver dollar values prices are continually rising in 2011, and now is the best time in history to invest in gold bullion coins and silver dollar values.   http://silver-dollar-values.com has all the details for a precious metals investing decision.

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