Refiners produce gold bars from one gram to 400 ounces.
The most popular are one oz coins such as the American Eagle, Canadian Maple Leaf, the South African Krugerrand, and the Austrian Vienna Philharmonic. They are easy to keep and closely match the price of gold with a small premium.
Older coins which fit the description of collectibles have a premium, to the value of gold included in the coin. The holder is dependent upon an accurate and fair appraisal.
A certificate can be given representing ownership of gold bullion held by a financial institution for convenient and safe storage. There is a fee for storage and insurance.
Gold futures and options
A gold futures contract trades on one of the futures exchanges, such as the COMEX in New York. The exchange method is generally leveraged and provides price movements much higher than if physical gold was being traded. It can also be used to sell short and can be used to benefit from a rise in the price of gold.
Gold Mining stocks
Gold mining stocks is stock ownership of a company traded on in one of the exchanges. The price movement is dependent not only on the price of gold, but also upon the future of the corporation and management. Its price movement is almost always more than the movement of gold itself. Market Vectors Gold Miners ETF (GDX) is one way to invest in stocks.
Representing the largest consumption of gold each year, gold jewellery is considered a possible way for consumers to invest in gold. Jewellery holdings are a major method of savings in developing economies.
Exchange Traded Funds (ETF)
Exchange traded funds (ETF) are shares bought from a fund based solely on the existing market price of gold. This method eliminates leverage and storage problems and is considered the safest method of buying and owning gold.
Gold Mutual funds
Gold mutual funds are a relatively safe method of buying and owning gold stocks. The buyer/owner can diversify among many stocks and leave all the investing decisions to a professional investor. Investment methods vary among funds and investors can choose from many different styles of portfolio management. Prices move faster and further in both directions than the price of gold.
WANT TO OWN GOLD, then it is as easy as ABC
Visit us at Level 10, 227 Collins Street, Melbourne. We are open Monday to Friday from 9.30am until 4.30pm daily, or call us today on (03) 96548166.