As a long term gold investor – I first became interested in Gold in 1998 – I have seen the options for investing in gold increase massively over the years along with the price of Gold. In that year, without any advice on how to invest in gold, I opened my first Gold investment account (in the equivalent of what is now a gold ETF).
Back in 1998 I was sure Gold was set for a rise. I didn’t know when, or how long it would take but I was convinced that, in the long term, Gold would be a safe investment. I wasn’t looking for a commodity speculation, or a headlong rush into the financial jungle, just a long term safe haven for money I couldn’t afford to lose – and would you believe it, I chose Gold.
Anyway, a year later the bank announced they were closing the fund as gold was going no-where! The UK Chancellor, Gordon Brown, obviously agreed. He sold 400 tons of the UK gold reserves when the price was at a 20 year low. Ever felt out-on-a-limb? Since then the price has almost trebled, meaning the Brown decision cost the taxpayer an estimated $3.5 billion. (Just shows you, don’t listen to the banks and the government.) For deeply embedded economic reasons the inexorable rise is likely to continue.
We now have an eclectic mix of options for investing in Gold. The variety of Gold investments on offer has never been greater – allowing the most conservative investor to make a relatively risk free dabble in the metal, and giving the more risk-prone investor the chance to gear-up by hundreds and sometimes thousands of percentage points as the Gold price rises.
– unlike gold bullion which is regarded as a safe haven, unhedged gold shares or funds are regarded as risky and are extremely volatile. Good professional guidance is recommended.
– invest in a wide range of mining stocks enabling the investor to spread their risk.
– This is a single stock representing the underlaying an index – in this case a gold index. The stock is backed by holdings of gold bullion (we hope)
– enable the investor to bet on the movement of gold, up or down, and can pay up to double the increase or decrease
– are issued by the Perth Mint and fully backed by the Western Australia state government, one of the safest places to have your precious metal stored. PMCs are a convenient way to buy and hold physical gold (or silver, or platinum) without taking personal delivery, and they give investors a way to store gold or silver offshore.
– The most traditional way of investing in gold has always been purchase of gold bullion bars and coins. Bullion coins are legal tender, produced by government mints and sold at a low premium.
– futures trading is possibly the cheapest way to buy gold, But only for the more sophisticated high net-worth investor.
Gold is an investment worth considering, and its not too late to profit. You can mix your risk by combining bullion, ETFs, and equities, but to get the best results, expert advice is recommended. For more information do take a look at our
which gives you plenty of valuable background information. Try it out. There’s no charge. By accessing our Gold Report you also access another valuable resource (also free) – our library of articles on precious metals and commodities – This library is continually expanding. You can reference it any time.