Friday, March 17, 2006

Investing in Gold Top ways to Invest in Gold

Investing in Gold - Top ways to Invest in Gold

Rising interest rates, high oil prices, inflation fears all of these items have rekindle a big demand for gold. Gold prices have risen to new highs over the last several months. Investing in gold can be confusing, however, there are a variety of ways to invest in gold and not all of them require you to actually buy gold coins.

Top ways to invest in gold:
  1. Gold coins: First of all you can buy gold coins directly from a coin dealer or you can buy them online from Blanchard. Investing in gold coins you can benefit from two areas, one is the rise in the price of golds and/or the rise in the numismatic value of the coins. The challenges of actually holding the gold coins include shipping cost, storage cost and selling your coins when you want to cash them in. Blanchard agrees to buy your coins back from you however, you will need to pay some level of fee or commision on the gold that they will buy from you.
  2. Bullion: Instead of buying gold coins you can also purchase gold bullion. Gold bullion investing is only for the potential rise in the value of the gold. There is not really any potential numismatic value in the bullion.
  3. Gold Mutual Funds: You could also buy a mutual fund the invests in companies that mine gold or have other gold related businesses that should benefit from a rising gold price. For example you could purchase the mutual fund GOLDX which has had a 34% annual rate of return over the last 5 years.
  4. ETFs: Another option for investing in gold is an ETF or exchange traded fund for example you could invest in COMEX Gold Trust (IAU) from iShares. An exchange traded fund is similar to a mutual fund and also similar to a stock. Most likely you will need a borkerage account or a financial adviser to buy a Gold ETF.
  5. Buy gold online: You could also buy gold online and not actually take possesion of the gold. For example you could buy gold from Goldmoney online and they will buy the gold for you and store the gold for you for a minimal charge.

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