Like we’ve written about in the past, there are tons of ways to invest in gold. One could own shares of a company that mines and/or refines gold — this is a popular method for most gold investors. The upside here is that the shares increase in price, the downside is that the shares decrease in value due to a whole host of circumstances. One such situation could be poor management even during times of rising gold prices. The shareholders will take the hit for the poor running of the company.
Gold can be held in funds not unlike mutual funds used for other types of companies. You are spreading the risk here and you will pay a fee for gold stocks upon buying and selling. ETFs are yet another way to own gold.
One of the best ways to go is to buy gold as coins or other forms of gold bullion like small gold bars. The most obvious advantage of having physical gold in your possession is that you have it without having to take control of it. You never know society’s condition when you want to take possession of the gold. There might arise a situation where you cannot get to the gold. Then the advantage of having purchased gold is erased.
When you have it in your possession you are ready to use it to feed your family or purchase life sustaining supplies like fuel for your automobile. Even having it in a local bank vault will do you no good if the conditions are such that you cannot even get to this bank. During very extraordinary times there is no question that Gold will be accepted while currency will not.
Owning physical gold entails a payment above the price per troy ounce of the gold coin or whatever form of gold is purchased. Once this is done there are no further charges for the gold that is in your possession. Make sure you compare the prices and do not pay more than the average premium above the stated price of gold per troy ounce.
The price of gold will vary from day to day according to market conditions. But the price of gold will be heading towards the upside more times than not. When currency is worth little to nothing, gold will always have a price.