There are currently 9 recognized precious metals. But only Gold, Silver, Platinum and Palladium can be considered investment commodities. Investors are most familiar with the four golds. Because gold is the original currency, the paper currency that was used to represent it has been essentially a promise of payment in gold. See Lear Capital to get more info.
Investing in gold can be a popular way to protect your assets from economic downturns or even international crises. Let’s face the facts, if the world began over after a major crisis and there were only one society, gold will still be the currency common to all of them. Below is a list with a brief description of some of most popular ways to invest in gold.
The best way to invest is to buy gold coin. While gold bullion coins are priced according to their weight, there is always a premium. There are many options for buying or selling gold coins. Online purchases are also possible.
Gold bullion bars, which are also known as gold coins, can be bought or sold over-the-counter in many Swiss banks. Special orders are possible in many other banks. You can also buy them online, as well as from local dealers. Because of the difficulty involved in transporting and storing gold bars, investors are not as interested in them. They remain my favourite and are often more expensive than gold coins.
You can trade gold in the same manner as foreign currencies with a gold account. You can either have your gold account backed with non-fungible (allocated), storage or pooled, (unallocated), storage. Leverage may also be possible when purchasing gold. However, this can come with risks. As gold moves up and down, you may have to spend more money on margin calls or have your gold sold at a loss. In the event that gold goes through a correction, you should consider all the money you invest as your entire investment.
An investor may also choose to invest in a golden certificate instead of buying gold bullion. However, this means that the gold bullion must be stored and/or protected against theft. A gold certificate lets the investor buy and sell the commodity. This eliminates the difficulty of owning real gold. Unfortunately, physical gold is not available to you.