Percentage in Point

Posted: 19 Oct 2010 12:24 PM PDT

Most people often face this dilemma of where should they invest their money which would generate some returns for them in the future. With the unstable economies around the world, investing money in shares and other financial assets, people might have to bare some risk. However, there is a financial asset which might not lose its value compared to other financial assets and this would be Gold. When an economy is not performing well, its currency is expected to lose value because of which people don’t invest in currencies. The safe option would be to invest in gold as it never loses its value and rather rises as economies suffer. There are seven types of gold investments which you could consider.

Physical Gold

If you wish to save your money in physical gold then there is a term which you need to be aware of and that is “gold bullion”. This is the technical term which is used for investments in gold. When you wish to buy gold for savings, you could buy the 24 karat bars or coins and for this you could visit a jewellery store which sells gold bars and coins.

Stored Gold

In order to prevent theft of gold which is a very heavy financial asset and is also often stolen, people could use stored gold. This is a investment facility in which your gold would be kept at an off site facility in a bank’s vault or some other place.

Gold Mutual Funds

This is an investment opportunity in which you do not have to maintain physical possession of gold rather you have to invest your money in mutual funds which consist of gold mining securities, exchange traded funds, futures and stocks. These will help you gain much higher returns than the physical possession of gold itself.

Gold Mining Stocks

This investment refers to buying stocks of the companies who are involved in the mining of gold. Since buying stocks is a very violatile process, therefore this would promise you high returns but would also be risky. This is the best way of investing gold without having to actually keep physical possession of gold with you.

Gold ETFs

This is an investment in which you buy the exchange traded funds(ETF’s). The certificate which you would buy would represent how much amount of gold you own and is being stored. For this they would charge you a storage fees, management fees and the annual insurance fees.

Gold Futures

Under this investment tool, the investor is required to make a contract which would determine that the individual would purchase this amount of gold on a particular date. There would be no physical possession of gold, however the profit would be made on the basis that the contract is sold on a higher price compared to at which it was bought earlier.

Gold Jewelery/Coins

If you wish to make high returns on the jewelery or the coins you hold, then you need to make sure that you buy historical gold so that it earns you a higher return when you decide to sell it. This is true because, the more you go back in date, the more pure is the gold thus making its value higher.

Therefore, if you wish to save your saving by investing them into gold or other gold investments then make sure you research about it as to how you much return you could earn over a given period of time rather than making a hasty decision.

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