Investing in gold

Research is key prerequisite to any form of serious investment, and investing in gold is no exception to the rule.

New investors should conduct some careful research before starting to build a gold investment portfolio, with a view to gaining a basic grasp of relevant factors such as weights, degrees of fineness, historic gold prices, and all the other fundamental aspects affecting the price of gold in the marketplace.

 

Alternatives to physical gold bullion

Of course, you can invest in gold without actually holding amounts of the precious metal itself, but by buying what may be called ‘paper gold’ – stocks and shares, funds and complex financial instruments associated with gold as a commodity - as we have mentioned in companion articles elsewhere on this site.

 

Gold bullion coins – a firm favourite with smaller investors

Gold bullion coins – the most famous of which is probably the Krugerrand – are an option favoured by investors who do not have an investment fund large enough to justify buying bullion in the form of gold bars.

Gold coins are a very practical and functional means of owning physical gold for the smaller investor. For the individual investor in gold as a commodity in its own right, the bullion gold coin is therefore a very popular choice.

 

Numismatology – collecting rare gold coins

More interesting, but also far more challenging, is investing in historic gold coins, since these are fundamentally ‘collectable’ items similar to stamps or antiques, with the significant difference that they contain a precious metal which has its own intrinsic market value.

It's important to remember that any gold coin is not going to be made of 100% pure gold. A long-standing global standard coin which still is very collectable is the British sovereign. Sovereigns contain over 90% gold, as does the American Eagle gold coin.

 

Gold bullion bars

Institutional investors such as pension funds are likely to hold physical gold bullion in the form of gold bars, which are easily accounted for, and can be stored securely in vaults by specialist institutions such as banks.

However you choose to hold your gold, we can confidently maintain that gold is set to remain a sound investment choice for the foreseeable future, with gold prices holding their values relative to the markets, while the commodity itself offers unrivalled security and stability – making gold a winning proposition foe investors at all levels!

Contact our expert team to find out more about investing in gold.