Invest In Physical Gold

If you are thinking about investing in gold, basically there are three ways
in how to buy gold. The straightforward and most obvious way is to buy physical
gold, for example, buying gold jewellery, gold sovereigns, gold bars etc.

The 2nd way is to buy some kind of paper contract that follows the spot price
of gold. There are contracts available in all major cities where you can
successfully have ownership of something that is going to track the gold price
but without actually physically handling the gold itself.

The drawback with the 1st option with physically buying gold bars is you will
have to store them somewhere. In fact you’ll probably be leaving them in a bank,
in a deposit account, in a cage or safe somewhere which may cost you money in
storage fees. Gold coins are relatively easy to store yourself.

So your options are to own and handle the gold yourself, own gold by taking
out a paper contract which will in turn track the price of gold for you and a
3rd way is to look at the ownership of shares in a gold mining company.

Of course there are a variety of these companies, some which mine gold only
and some which mine assortment of minerals as well as gold. The problems you
could face here are similar to the inconvenience that can arise with all shares
with things getting more complicated. If the company is badly run or their
reserves are not as high as their stocks of other minerals the mining shares
might not follow the spot price of gold as closely as you may have liked.

On the other hand it’s relatively easy to buy and sell shares and if you
have a physical possession of gold such as sovereigns or gold bars they will be
very easy to sell on. So you need to consider physically owning the gold which
can be a very rewarding experience when building a collection of sovereign coins
or do you want a paper contract that will track the price of gold or do you want
to add a mining company to your portfolio.

Consider those three options very carefully before deciding how you would
like to get into the gold market. The price of gold can move in unexpected
directions due to all the large banks holding a lot of bullion in reserve. From
time to time they have to move this bullion around to defend their currency
which can course the prices to fluctuate. This will mean that gold can be a very
good investment but on the other hand you may need to hang on to your gold for
some time to see a really good return.