Gold is a solid investment vehicle. The price does fluctuate, but it generally remains true to the actual value of currency. The actual price of gold has risen very little when you consider the fact that inflation has arbitrarily increased the actual dollar bill to ounce of gold ratio.
Nevertheless, gold has remained as something mostly stable and still on the rise due to the ways that it is traded. If you're interested in getting involved in the type of investment that could provide an eventual profit, then there are a number of ways to invest in gold.
1. Gold Bullion
The most accessible way to invest in gold is by buying gold bullion. That includes purchasing gold jewelry, gold bars, gold coins and everything else that is made out of gold from anyone and everyone. The only downside that this type of investment has is the fact that you're liable for storing your own investment. You can do so by storing it at your home or in a bank's safety deposit box.
2. Gold Coins
Another alternative is to invest in coins made out of gold. A few examples of the types of coins you might invest in in are American Buffaloes, American Eagles, St. Gauden£s and sovereigns One reason you might prefer investing in this way is because coins are typically worth more than their face value. For example, a 22-carat gold sovereign has a face value of just $2. They also cost somewhere in the region of $200 to purchase and can immediately be resold for about $210. A Gold Sovereign's worth can be directly tied to how rare it is and therefore their values can fluctuate as they become available.
3. Exchange-Traded Funds
The naming behind Gold ETFs is a bit confusing. They're not actually funds because they follow a single security. They're traded openly in a way that is comparable to normal stock trading. The way they work is that they track the price of gold each day and can be traded very easily. Unlike stocks or other modes of investment, you only need to pay a very minimal dealing charge in order to trade Gold ETFs.
4. Gold Accounts
Banks that deal strictly with gold bullion offer an alternative to buying it yourself. In a gold bullion bank, you can invest in either an allocated or unallocated gold account. An allocated account is very similar to keeping gold at a bank in a safety deposit box and is therefore the safest form of stored gold that you can invest in. An unallocated account has no gold bars stored for you. The advantage in an unallocated account is that there are no storage or insurance fees, which is what typically turns investors away from allocated accounts.
5. Gold Certificates
Gold certificates were used when the gold standard was in effect in the United States. These certificates, which were issued from the beginning of the Civil War in 1861 until 1933, are a promise from the United States Treasury that allows the certificate to be exchanged for an equal amount of gold. These certificates offer a way for you to buy gold without actually having to physically store it. You can also sell portions of your gold simply by making a phone call.