The Best Ways to Invest in Gold
Posted August 14, 2009on:
#1 Investment – Gold Bullion
Physically owning the metal is the most direct and traditional method of investing in gold. In some countries, gold bullion can be bought and sold at major banks. In most regions, however, bullion dealers provide the services necessary to purchase physical gold.
Gold bullion is generally sold in two main forms, bars and coins.
Gold bars are available in various weights, generally ranging from one ounce to one kilogram. There are approximately 100 active gold refiners around the world whose bars have earned “good delivery” status from one or more of the associations and exchanges. Johnson Matthey, Pamp Suisse, and Credit Suisse are among the most popular.
Gold coins are another way to invest in physical gold. Priced according to their weight and purity, coins often carry a slightly higher premium than gold bars. Among the most popular are the American Gold Eagle, American Gold Buffalo, Canadian Gold Maple Leaf, Australian Gold Nugget, South African Krugerrand, Chinese Gold Panda, and Austrian Gold Philharmonic. All of these coins contain one troy ounce of gold— except the American Gold Eagle, which is only 91.67% pure gold.
Both gold bars and gold coins are priced according to their weight and purity, but they always carry a premium above spot gold prices. We recommend investing in Gold Bars because the premiums are always lower than Coins.
Gold is working up the gumption to walk through $1,000 for the third time in this historic climb, Fools are encouraged to step into a broader understanding of the 10 Fundamental Factors behind the metal’s gilded outlook.
1. The United States is awash in a sea of trillions.
2. Derivatives are falling from a massively frothy peak.
3. As spending skyrockets, government revenue is set to contract sharply.
4. Quantitative easing is a very slippery slope.
5. The U.S. dollar is set for a sustained decline.
6. Inflation Looms.
7. A question of confidence.
8. Gold remains cheap.
9. Gold is relatively scarce.
10.The ultimate safe haven.