GOLD INVESTMENT

Throughout history, few investments have rivaled gold in popularity as a hedge against almost any kind of trouble, from inflation, to economic upheaval or currency fluctuations, to war. When you think about investing in gold, don’t restrict yourself to just buying physical gold, like coins or bullion. Alternatives to invest in gold include buying shares of gold mining companies or gold exchange- trade funds (ETFs). You can also invest in gold by trading options and futures contracts.

Investing in the stock of companies that mine, refine and trade gold is a much more straightforward proposition than buying physical gold. Since this means buying the stocks of gold mining companies, you can invest using your brokerage account. Keep in mind, though, that the shares of stock of gold companies are correlated with gold prices but also are based on fundamentals related to each company’s current profitability and expenses. This means investing in individual gold companies carries similar risks as investing in any other stock. Single stocks may experience a certain level of volatility and do not provide you with the security of diversified funds.

If you’re concerned about inflation and other calamities, gold may offer you an investing safe haven. Though in the shorter term it can be just as volatile as stocks, over the very long term, gold has held its value remarkably well.

* Several ways exist to invest in gold: buying the metal itself, buying gold funds, or buying gold options.
* Mutual funds and exchange-traded funds that invest in the precious metal or shares of mining companies offer a more liquid and low-cost way to invest.
* More sophisticated investors might trade gold futures or futures options.