Is Buying Gold as Investment Good?

Traditionally, people have continued buying gold as investment.  Though buying and taking gold bars and coins in possession is still a favorite of many, modern investors get many other options for buying gold as investment. Here are some such options:

1. Physical Gold

Possessing gold in its physical form like bar and coins had been the traditional way of buying gold as investment and is still practiced.  Physical possession of gold brings a great feeling and sense of relief to many investors as they can see and feel it, unlike holding of stocks.

However, when buying gold as investment, caution need to be exercised, especially when buying coins as counterfeit coins made in China are already in circulation in the markets of US, as warned by Swissamerica.com in the year 2009. Quite a few coin certifying agencies have jointly issued warning to buyers about such fakes, which are frequently sold through online auction sites and flea markets.

2. Gold Financial Instruments

It is worth looking for an appropriate ETF (gold exchange traded fund.) It is a positive and easy way of investing in gold. Moreover, you may use the same for retirement account. Investors may also choose to have gold futures and options.

3. Gold Mining Companies

Another way to buying gold as investment is to procure stocks of companies operating gold mines. Like buying of any other stock, the investors should choose well managed companies having been awarded good ratings by market experts.

Buyers Beware

Buyers must use caution while dealing with brokers and companies making attractive offers to prospective buyers. In California, prosecuting agencies are already looking into complaints of over hundred consumers who reported that either the sellers misguided them or failed to offer the ordered coins as per specifications.

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