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Thursday, November 13, 2008

Which Gold Investment?

Which is the best way to invest in gold?
We believe there are a number of different ways to invest in gold:-

* Gold Accounts
* Gold Futures
* Gold Mining Shares
* Gold Bars
* Gold Coins

Gold Accounts
It is possible for larger investors to have gold accounts with major banks. In many countries such as the UK, this is not easy, as there is little tradition of banks offering gold account and dealing facilities. Accounts are usually only available with "private bankers" for individuals with a few million to invest. You may wish to read why we do not offer storage or accounts.

Gold Futures
This is a highly professional market, but is more for the speculator than the investor. It is essential to use a trustworthy commodity broker, as there are many potential abuses and pitfalls.

Gold Mining Shares
This is probably the best way to make a "paper" investment in gold. There is a simple theory that when gold bullion prices and demand increase, then gold mining share prices will follow. Some mines fully hedge their future production however, so the theory does not always hold true for all producers. Mining shares in general can be quite risky.

Physical Gold - Bars
Taking physical delivery of your gold is a very safe way of investing in gold. Gold bars are one method of achieving this.

Physical Gold - Coins
Gold coins are often more convenient than bars, and can often be bought for lower premiums than bars, weight for weight. There is a large selection available. The first decision is often whether to buy older coins or new "bullion" coins.