Anyone can make an investment in gold, and such investments are now very popular. Lately the gold market has turned into a lucrative option to start investing in. You have to decide on the way you want to invest in gold. That really is the key to making gold a safe and profitable investment. Investors can be broadly classified as investors in gold, and numismatic collectors.
The numismatic collector buys collector gold coins for a portfolio and has to pay for the price of the metal – a numismatic premium – and for the dealer profit. This can cost a higher price for the gold coin, which he can pass on only to a numismatic collector in premium market. Only with better experience and knowledge than your numismatic dealer will you be able to make a profitable deal.
And of course these are high risk propositions. A few numismatic coins can fetch you something of a fortune, but things can just as well go south. A fall in currency value can result in investors dumping collectible coins in desperate attempts to raise liquidity. And this leads to a fall in the price of the gold that you have with you.
One best way to invest is in physical gold. Investors in physical gold can accumulate them as coins or bars, or both. Buying options are available at banks or at dealers’. Gold coins are preferred over gold bars because of their convenience to realize into cash. Any investment is to be made for a long term, if you’re to get the best returns.
The other investments in gold are gold mine shares or gold exchange trade funds. Governments popularize investments in these areas. The gold exchange trade funds are widely popular and ostensibly the best way to invest in gold.
Gold certificates have been in existence from 17th century. If you do not want to be in possession of physical gold but want to make money from the gold market, then you can go for this very convenient investment option.
All the methods seen here are for different ways of investing in gold. They all have both advantages and disadvantages. It is for each investor to decide what’s the best way to invest. In this connection he can seek advice from professionals. I am sure none of the professionals would stand against investing in gold in this period of financial crisis.