Investing in Gold: How to Embark on Gold Investment

Gold is the most widely sought-after among the four precious metals known as investment commodities. People wedge against economic crisis by investing in gold. There are various ways to invest in gold.

Here are some of the well-known ways to invest in gold:

Buy Gold Coins

Buying gold coins is perhaps the number one way to invest in gold. Typically, the price of gold bullion coins is determined by their weight, the gold spot price has a premium added to it. In majority of the Swiss banks, buying and selling of gold coins could take place over the counter.

Own a Gold Account

Most of Switzerland’s banks will open a gold account for you. In these banks, the buying and selling of gold is carried out just as foreign currency trading is done. The two most popular ways to back a gold account are through pooled storage or non-fungible storage.

Own a Gold Certificate

As a gold investor, you can choose to lay hold of a gold certificate instead of handling the physical gold bullion. With the gold security, you can purchase and sell security without encountering the inconveniences that come with the actual gold transfer.

Trade in Gold-Traded Exchange Funds

Gold Traded Exchange Funds (GETFs) offers another option when it comes to investing in gold. The trading is comparable to trading shares in the London Stock Exchange or the New York Stock Exchange. In 2003, the first Gold Traded was introduced and stood for one-tenth of one ounce of gold. GETFs offer great way to achieve exposure to gold price. The inconvenience comes in the storage, plus you have storage fee and commission to pay.

Enter a Contract for Difference

You can find CFD services in some of the renowned financial services companies, particularly in the UK. This is a contractual relationship where the buyer and the seller agree that the seller will pay the difference between gold’s current price and its value to the buyer as at the time of contract.

You can choose any of these methods to invest in gold.

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