How to invest in gold for long term investments and for speculation purposes

Investing in gold is something which I have been telling on this blog as a way to diversify your portfolio and that will mean that you need to make sure that you know all the investment avenues that are available for gold investing. Here are some of the ways about  how to invest in gold

Gold coin and bars

This is most easiest and the best way to invest in gold for people who just do not know what is stock market and they just need to buy the gold when thy have the money. You can visit any bank or any good brokerage house and chances are that they will have the gold bars or the coins that they can sell. They will have gold coins which are minted by the American Mint and are called as American Eagles

Then there are others like the Royal Canadian mint’s Maple leafs

South Africa Mint’s  Krugerrands

Gold spot market

There are various exchanges from where you can buy gold and some large banks and big institutional investors buy via big banks but hey you probably as an investor cannot access this avenue.

Comex is the division of the New York Mercantile Exchange which has the futures market in gold. There you can enter into a futures contact.

Gold ETF’s

ETF’s or exchange-traded funds issue securities which are backed by the actual physical gold. This is a good method for retail investors as then they can very easily buy and sell gold without the burden of holding physical gold.

Some of the famous ETF are

SPDR Gold Trust

COMEX Gold Trust

Gold Bullion Securities

ETFS Physical Gold

Physical Gold

The reason that gold has crossed $1000 is that once the US dollar is weak then most of the investors who were holding onto US dollars as the way to safeguard their positions are now buying gold instead. The weak US dollar means that lot of investors can easily buy US dollar denominated gold as that is now cheaper for them.

Another major factor is that Central governments are not selling gold and that has meant less gold and there is a demand and supply gap.

China and India are becoming huge middle income economies with people becoming more affluent. More affluence has brought the desire to buy more gold and that has led to more demand.

The primary reason for gold is that the supply is always less and hence the gold will never lose its lustre. This supply is less on account that people buy and save physical gold as a hedge against the dollar weakening and also as a so called safe-haven against any stock market crash. With Mr. Bernanke suggesting more inflation dollar will lose value and then we will have a situation where it will be dollar quickly losing its value and hence we need to have more of the gold as a safety net.

If you are stock market investor then make sure that you look at the list of gold stocks for buying to make the most when the gold price is rising and gold stock investing is not bad in these times..

Some good stocks are

Eldorado Gold (ASE: EGO)

Goldcorp (NYSE: GG)

Agnico Eagle (NYSE: AEM).

Note: If you are thinking about investing in silver then buy it in 10 or 100 ounce bars.

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