Gold has had a special place in society from time immemorial.
Various cultures and civilizations have revered gold down through the
ages. Even in modern society, the metal has a lot of power and clout.
Common folk as well as investors prefer to buy it for investment
purposes. There are various different ways in which one can invest in
gold.
Physical Gold
Gold coins and bars are available for sale in certain countries. Most Swiss banks sell bullion coins over the counter. The price of these bullion coins is calculated based on their weight. Bullion bars are also available for purchase over the counter in many of the major banks in Switzerland and Austria. Since coins are small and less in value, they are more affordable than bars. Therefore, most people who buy physical gold, buy bullion coins. Bullion bars are much more expensive and are purchased only by an exclusive few who can afford it. The inconvenience of verifying their value, and transporting and storing them makes bars less attractive than coins.
Gold Certificate
Apart from buying the physical metal using the traditional method, investors can also buy the precious metal in the form of certificates. The possessor of the certificate owns the commodity, but does not have the inconvenience of storing, guarding or transporting it. These certificates can be sold or bought just like the commodity that underlies it.
Gold Account
Many Swizz banks offer gold accounts which is another way to invest in the yellow metal. Just like buying and selling foreign currencies, investors with an account can buy or sell the metal quite easily. The accounts are backed either by allocated or unallocated storage of gold.
Contract For Difference
A Contract For Difference is an agreement between the buyer of the contract and its seller, where the seller pays the buyer the difference between the current value of gold in the market and its previous value at the time of the contract. When the difference goes negative, the buyer pays the seller instead. A CFD therefore allows investors to speculate the price of the precious metal in the market. A few major firms in the UK provide CFDs.
Gold Exchange-Traded Funds
Trading in Gold Exchange-Traded Funds is very similar to trading in the stock market. It gives investors a better picture of its price in the market. The inconvenience of storing the actual product is also avoided when trading with Gold Exchange-Traded Funds.
These are 5 different ways in which people can invest in gold. They can choose an investment method that suits their style and preference.
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Physical Gold
Gold coins and bars are available for sale in certain countries. Most Swiss banks sell bullion coins over the counter. The price of these bullion coins is calculated based on their weight. Bullion bars are also available for purchase over the counter in many of the major banks in Switzerland and Austria. Since coins are small and less in value, they are more affordable than bars. Therefore, most people who buy physical gold, buy bullion coins. Bullion bars are much more expensive and are purchased only by an exclusive few who can afford it. The inconvenience of verifying their value, and transporting and storing them makes bars less attractive than coins.
Gold Certificate
Apart from buying the physical metal using the traditional method, investors can also buy the precious metal in the form of certificates. The possessor of the certificate owns the commodity, but does not have the inconvenience of storing, guarding or transporting it. These certificates can be sold or bought just like the commodity that underlies it.
Gold Account
Many Swizz banks offer gold accounts which is another way to invest in the yellow metal. Just like buying and selling foreign currencies, investors with an account can buy or sell the metal quite easily. The accounts are backed either by allocated or unallocated storage of gold.
Contract For Difference
A Contract For Difference is an agreement between the buyer of the contract and its seller, where the seller pays the buyer the difference between the current value of gold in the market and its previous value at the time of the contract. When the difference goes negative, the buyer pays the seller instead. A CFD therefore allows investors to speculate the price of the precious metal in the market. A few major firms in the UK provide CFDs.
Gold Exchange-Traded Funds
Trading in Gold Exchange-Traded Funds is very similar to trading in the stock market. It gives investors a better picture of its price in the market. The inconvenience of storing the actual product is also avoided when trading with Gold Exchange-Traded Funds.
These are 5 different ways in which people can invest in gold. They can choose an investment method that suits their style and preference.