Gold’s been on a tear in recent months, increasing rapidly in value. Gold’s sudden ascent has many people interested in investing in gold, but unfortunately there’s so many gold investment products out there it’s hard to know which one to buy.
Each gold investment product has its own advantages and disadvantages, and each can appeal or repel individual investors based on their unique personal circumstances. Knowing which gold to buy is important if you want to successfully invest in gold.
Solid gold bars are a very popular gold investment item right now. This is one of the easiest ways to own actual gold. Gold bars can be bought online or from gold dealers. Almost all gold bars are 24 carat gold, making it easy to keep up with their value. Also, for folks who don’t want the trouble of storing gold bars themselves, gold bars can be bought in allocated and unallocated amounts from banks and other financial institutions, who will handle storage for you.
One of the great advantages of owing gold bars is that they have a smaller premium than gold bullion and are easier to buy and sell. Gold bars are the simplest gold investment available.
Gold coins are another investment option. Numismatic gold coins have collector’s value, plus the value of the metal used in the making of the gold. Coins are a more sophisticated investment than bars, as the buyer must be able to evaluate coins and determine their value based upon a number of factors such as age, condition and scarcity.
Gold stocks are another method of owning gold. If you don’t want the bother of owning physical gold, you can make money from the gold rush by investing in companies related to gold extraction and processing.
There are also a number of other gold investment products that allow investors to reap the benefits of gold without buying the physical product. Gold futures let investors bet on the future prices of gold. Gold ETFs combine the benefits of stocks and mutual funds. ETNs are a bond-mutual fund hybrid. Each of these investment products has its own pros and cons, and investors are advised to consult with a financial planner before purchasing any of these products.
Since 2006, the price of gold has more than tripled. Gold recently shattered the $1,400 per ounce ceiling, and as economic worries continue to plague traders and investors, it remains likely that there’s more room for growth in the price of gold. Because of this potential, gold is a great investment right now.
If you’re interested in buying gold, the best thing to do is research the gold investment product you intend to use very carefully. Due diligence now means not having to cut your losses later.