Why Should I Invest In Gold?

Filed under: Gold Investment

In today’s financial climate of unstable uncertainty the historical value of investing in currencies has become somewhat dangerous, at any moment a world paper currency could collapse leaving your hard earned money worth a fraction of what it was worth the day before.

History has shown that literally overnight a paper currency can devalue and become almost worthless. Fortunately there is an answer to this dilemma, the answer is precious metals, well to be precise gold. Gold is one investment that has stayed rock solid over the years and will continue to perform year on year, the superb thing about gold investments is that it’s a commodity that can be physically held making it all the more of a valuable asset.

Dig a little deeper and you will find that the larger economies of the world like China, Russia and India, who have in the past invested in American bonds, are now bailing out of the worrying US currency game and buying up Gold and other precious metals at an alarming rate. In fact China, in particular, have an ongoing agenda to increase there Gold holdings by a substantial amount in the next few years. As this happens the price of Gold will increase at an astonishing rate.

How Do I Invest In Gold?

There are a few options available for investing in Gold:

  • Option 1 – Buy And Own Gold Bullion:
  • This is probably the easiest way to invest in Gold, just purchase Gold bullion (bars of gold) or Gold coins directly from dealers and physically take delivery of the Gold. There are multiple on-line and off-line sources for buying Gold this way and the price, per ounce, will generally be a couple of dollars above the daily Gold price (spot price).
  • Option 2 – Buy Gold And Let The Seller Gold The Gold:
  • This option for investing in Gold is identical to the first, however the bank or seller will hold your Gold in their vaults until such a time as you want to sell or collect. This option is particularly popular for large Gold buyers who do not have the space or security to store their Gold investments.
  • Option 3 – Gold Exchange Traded Funds (ETF):
  • This is a much more interesting way of investing in Gold and is geared towards the stock exchange type of investments. ETF´s are a way of speculating on the price trends of Gold and investing as if it were a normal stock. The stock investment opportunities can be found , on the main stock exchanges, under the symbol GLD.
  • Option 4 – Gold Options And Futures:
  • This method of investing in Gold is probably best left to the more experienced investors, the options allow investors to speculate on the forth coming prices of Gold, where as the options allow the investor to speculate on price fluctuations in either direction.

In conclusion the value of Gold is almost guaranteed to rise as the growth of the more tangible asset based economies such as China continues and the decline of currency based economies such as America grows in pace. More and more countries, investors and individuals will want to hold safer investments, that do not rely on currencies, such as Gold.

Posted on January 17th, 2011 by admin

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