For quite some time, gold has been a form of currency used worldwide, renowned for its aesthetic appeal, naturally malleable qualities, and rarity.
Like any other investment, gold is not impervious to unexpected price fluctuations, but over time has proven itself to be a worthwhile investment that defends itself from the dangers of inflation and deflation, thriving especially during tough economic times. Gold is also unique in its fungibility, and is universally traded throughout the world.
Buying gold and silver can be accomplished through a number of different outlets, and precious metals such as these are especially fine investment tools because of their duality in being both a tangible and a paper investment.
Because of its palpability as a raw asset, many people prefer to buy gold in the form of coins and bars. From as little as a one ounce bullion coin to as much as a 400 ounce ingot bar, gold is available in a variety of different forms. Bullion coins are popular not only as an investment, but also as a collectible of sorts. These coins come in various kinds from the American Buffalo and Gold Eagle to the Australian Kangaroo and Canadian Maple Leaf. For investors seeking larger quantities of gold, bullion bars begin in sizes as small as 10 ounces. While these bars are a hit among larger, more wealthy investors, one of the main concerns that accompany gold bars is how to store them.
Though having your investment at hand is a comforting thought, it also means that you have to tend to, and safeguard your investment. In order to avoid this problem, wise investors will take the precautionary measure of purchasing a safety deposit box for around $100 per year. With a safety deposit box, you can still enjoy ready access to your investment, without having to worry about it being subjected to the possibility of damage or theft. For added security, the option of a gold depository can be rented, though you may have to pay a percentage of your investment’s value each year for this service. While this is considered by most people to be the safest investment method, it may be a difficult proposition if one of these depositories is not within close range of your home, though if it is at all possible, your best bet is certainly to search for one in your locale.
Some people who prefer not to pay for any added securities when investing in gold will simply buy a home safe or hide the gold within the confines of their demesne. While this is a simple, easy, and fast way to store your gold, it can be a difficult proposition when you are dealing with gold in larger quantities, as it can become quite large and heavy.
For those who would rather avoid having the responsibility of caring for their physical gold investment, investing in gold is still a possibility, thanks to exchange traded funds, geared ETFs, options and futures in gold stocks, and the purchase of shares in Australia’s Perth Mint. All of these choices are great ways to invest in gold without actually purchasing gold in its raw form. When it comes to investing in gold through paper assets, there are certainly more risky and more stable options, so if you are confident in your ability to predict gold’s future performance, choose futures and options as your number one choice. However, if you would prefer a more stable investment in this yellow metal, you can take comfort in the Australian Perth Mint shares, which are directly backed by the Australian government.