Many are seeing the benefits of gold as investment during this down economy. Inflation is running high, and you need to think carefully before you invest in gold. There are many options out there when it comes to buying precious metals. Below are the top 5 ways to buy precious metals.
1. Physical Coins – Gold as investment purposes has been around for thousands of years, and so began the minting of coins. Coins have the advantage of being small, portable, and they hold a tremendous amount of wealth in a small size. These treasures can be bought from many dealers online or at your local coin dealer.
2. Physical Bars – Bars are a great way to invest in gold. When you buy bars you are purchasing gold in its cheapest form. For the most part, bars offer the smallest markup, or premium, over the spot price than smaller denominations of gold.
3. Precious Metals IRA – Gold as investment in your IRA is a great way to hedge against inflation while diversifying your retirement account. When you buy gold for your IRA you are simply having a gold bullion dealer, or third party storage company, store your gold for you.
4. COMEX Contract – A gold Comex contract is a futures contract for a specified amount of gold. One gold Comex contract is 100 oz of gold, and is deliverable upon request when the futures contract has ended. Your gold is actually stored in the Comex vault, but many people have complained that the Comex is giving cash settlements rather than physical bullion.
5. ETF’s – GLD is a exchange traded fund. Essentially, GLD is traded like a mutual fund on the market. You don’t actually own the gold, but you have exposure to the price of gold similar to a derivative. This could be a good route if you aren’t looking to own the physical bullion.
However you choose to buy gold as investment, it’s important to know that there are many reasons why gold and silver should be in your portfolio right now. Inflation is just on reason, but there are several other shocking reasons why precious metals just may explode in price soon.