Ways to Invest in Gold and Other Precious Metals

If you are one who pays attention, however briefly, to what you see, hear, and read, then you might be aware that gold investing is a big topic these days.
Turn on a talk radio program and often, there’s a series or informational on the subject. Internet ads urge people to buy gold now and protect yourself against a worsening economy and worldwide economic crises. Gold can protect against rising inflation in the country and in the world.

It’s wise to keep in mind, though, that a stable economy can limit your return on investments in gold and other precious metals. With that kept in perspective, what are some ways that one can invest in gold, and which ways might prove to be most profitable for the investor, whether new to the market or not? Before beginning to look at various ways to invest in gold and other precious metals, try to remember the golden rule of investing. This is the one pertaining to not putting all your eggs in one basket. Diversity is the key to successful investments of any form, and the same goes for gold investments. Whatever your investments, a certain percentage invested in gold is a good idea, if only because it adds diversity among your investments. And although it’s possible to have gold as your only investment, this is usually not recommended. Spreading your investments around offers better financial protection in the long run. Once you have decided to invest a share of your money in gold, how is this done? What are some various ways to invest in gold and/or other precious metals?

One method is to purchase gold itself – in coins, bars, biscuits, jewelry or any physical form made of gold. It’s real, it’s tangible, it’s gold. If you purchase physical gold for investment purposes you will need somewhere to store it, such as a safe at home or a safety deposit box. There are pros and cons of each form of physical gold purchased, and some further research can help you decide whether to invest in gold jewelry, coins, bars or biscuits. A gold biscuit is basically a gold bar, only one made from “stamping” a rolled gold sheet. This is thinner than a bar made from pouring gold in to a mold, which is known as a “cast” bar. Dealers often tend to refer to both types as bars. Physical silver can also be purchased as jewelry, bars, or coins.

gold bars

Another method of purchasing gold and some other precious metals is the paper method. Paper investment can be accomplished through mining stocks, also known as equity, ETF’s , or Exchange Traded Funds, and, recommended only for the very experienced investor, futures contracts or futures markets. E-gold or silver, or digital gold/silver currency, is another investment option.

For precious metals outside of gold or silver, the paper method is normally the best way to invest. While platinum can be physically purchased, in coins, it is harder to cash in that way. Palladium can also be used in jewelry and coins, but is about half the value of gold. Two platinum metals, iridium and osmium, are not usually used as investments. Likewise, investments in rhodium and ruthenium are not investment type metals, either. All of the platinum group metals are rare, and for those who do invest in them, one must buy in very large lots to get a good price. There are no real futures markets with these metals.

For those interested in investing in gold, silver, or other precious metals, research in to the various investment methods is recommended, especially for those who wish to get the best return for their investments. There are some who feel investment in physical metals is less risky than paper investments in the same metals, and others who believe just the opposite. Much depends on factors such as rarity, demand, and the overall market.

If you want to buy gold or silver, GoldSilver.com and Goldmoney.com are safe places to do that.