The Two Safest Ways to Invest in Gold

Buying gold bullion coins is a great security investment. The gold coins have a premium thus they are not advised for short term profit investing, but as a hedge against inflation. The markup is usually one percent above market price. The coins have at least 0.900 percent purity and come in fractions or multiples of one troy ounce.

Gold bullion is a great investment because in the case of a financial crisis physical gold will be on hand. Gold is rare and cannot be reproduced, thus it is always of value. During a financial crisis paper money will lose all its value, will be inevitable, and so having physical gold on hand, will provide an investor with a tradable form of income.

Gold coins can be purchased from the U.S. mint or from the mint of any coins countries origin. Some popular coins are the American Eagle, American Buffalo, Canadian Maple Leaf, Chinese Gold Panda, Swiss Vreneli, and South African Krugerrand.

Another way to invest in gold is gold mutual funds. A gold mutual fund is money pooled from multiple investors in bonds, stocks and other assets. An individual manages the fund and invests according to specific investment objectives, trying to provide investors with the most capital gain.

Mutual funds tend to follow the same trend as the market. When gold is strong a mutual fund will over perform the market, and when gold is at a lost the fund will do worse.

Gold mutual funds allow investors who are not experts at the stock market to invest with a small amount of capital. Also this helps to diversify an investor’s portfolio. At the end of the trading day if a profit is made, then losses subtracted the remaining funds are distributed to the investors as profit.

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