Different Ways to Invest in Gold

Out of the four known precious metals that are considered good investment commodities, gold is the most popular; hence, you can find a lot of ways to start your own gold investment portfolio. This is also a good protection against financial crises such as social unrest, economic and political instability. When it comes to gold investment, there are six ways that you can choose from. These would typically include the buying of gold coins and gold bars, opening a gold account, owning certificate, and trading in gold exchange traded funds or GETFs and entering contract for difference (CFD).

Buying gold coins is the most popular gold investment options today since gold bullion coins are priced based on their weight and not on their face value. Moreover, a premium can also be added to their gold spot price, raising their value more. It is also easy to trade them since they are sold or bought over-the-counter in most Swiss banks worldwide. Another good gold investment choice is buying gold bars since they can also be bought or sold OTC in most Swiss banks and the major banks in Austria and Liechtenstein just like the gold coins.

Buying gold bars is also the most traditional gold investment method today with a number of bullion dealers trading on this kind of service. However, it is becoming less and less of an option due perhaps to the proliferation of fakes and the number of robberies associated with them besides the fact that the investors find the verification process, transportation and storage process to be tedious. It is a good thing you still have other alternatives for your gold investment portfolio in the form of a gold account, gold certificate, trading in Gold Exchange-Traded Funds (GETFs) and entering in contract fro Difference (CFD).

Owning gold certificates, an account, or trading in other gold investment portfolios is a lot safer than owning the physical gold assets since they do not have the hassles of safety and storage. For your gold investment portfolio, you can open a gold account in most banks in Switzerland where gold is sold and bought just like foreign currencies; while you can also opt to own a gold certificate instead of gold coins or bars since they both have the same value but certificates are much easier to handle and provide risk-free transfers.

Trading in GETFs and entering in CFD are good gold investment options because of their many benefits. With GETFs, you will be trading shares in Gold Bullion Securities in the New York or London Stock Exchange, whose value is 1/10 of an ounce of gold. This is a good way to gain exposure to the price of gold, though its amount may be expected to decrease over time due to the expenses incurred in the handling of the fund.

Contract for Difference, meanwhile, is a contract between the seller and buyer where the buyer agrees to pay the difference between the current value of the gold and its value at contract time. If the difference is negative, the seller will receive the payment. This provides the investors the advantage to speculate on its long and short positions. Regardless of the gold investment methods that you will choose, gold is still the best investment tool since its value does not depreciate just like other commodities.

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