Smart investors know their options, and when it comes to gold investments, there are a lot to choose from. Investigating all your options before you make an investment in precious metals will definitely pay off. Choices range from buying bullion you can hold in your hand to buying stocks of mining companies. Many investors choose to use a combination of strategies. Let's take a look at the different options that are available for gold investments:
Gold coins
Buying gold coins is a simple way to invest in a relatively small amount of metal. There are two main types of coins: bullion coins and numismatic, or collectors' coins. Both are viable investments, but they behave differently and require a different type of attitude when investing. If you are interested solely in possessing gold, then bullion coins are for you. If you are a collector, and you would like to take advantage of premiums in the collectors' market, then numismatic coins should be your choice. Keep in mind that significant research is advisable when making a numismatic coin purchase.
Bullion
Also called "Gold Bars" these are larger hunks of pure gold that are stackable, storable, and useful to investors who want to buy in larger quantities. Bullion ranges from a fraction of an ounce to 400 ounces. The most common bars sold to individual investors are 10 ounce bars.
Accounts and Certificate Programs
Gold accounts and Certificate Programs allow investors to buy precious metal without the hassle of storing it. Instead, the company holds it for them in a vault. These programs can be either allocated, where specific items (like bullion) are stored for the investor, or unallocated, where the investor gets ownership of unspecified metal that is pooled among all investors. This option is attractive for investors who want purchase in larger quantities, and do not want the hassle of storing and protecting it.
Gold ETFs
ETFs are instruments that allow investors to buy and sell gold with a click of a mouse. The ETF holds bullion in a central vault that backs the shares of the investment. Owners of the shares do not have the right to take delivery of the bullion, only the right to buy and sell the share that represents the bullion. Some say this is a small price to pay for the convenience and liquidity of the investment, others say that in a market collapse or breech of vault security, the shares would be worth nothing.
Gold stocks and the Miner's ETF
Mining stocks are a way to invest in individual companies that mine precious metals. These stocks tend to be more volatile than the spot price itself. For those investors who do not wish to pick mining stocks, there is an ETF called the Vectors Gold Miners ETF that tracks a basket of mining stocks. The investment is still more volatile than gold itself, but the investor has some diversification by being invested in an array of stocks.
As you can see, there are plenty of options to choose from. Whatever you choose, make sure it aligns with your investing objectives.
Brian is an expert on gold investing and gold prospecting. His website, The Gold Spot [http://www.the-gold-spot.com/index.html] is a comprehensive guide to gold investing and gold mining for hobbyists.
For more information on Gold Investments, go to the-gold-spot.com/gold-invesments [http://www.the-gold-spot.com/gold-investments.html]
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