How to Invest in Gold the Best Way

By James Leitz -

How to invest in gold is a question many inexperienced investors want answered in simple terms. There are several ways to invest in gold, and there is a best way for the average investor to do so. Here we list several alternatives, saving the best way for last.

You can own the physical stuff, for example gold coins. If you invest in this way you will pay a dealer a premium, you must store it, and it is not very liquid. To sell it you need to search for a good price and then physically make delivery to the buyer.

Speculators buy and sell gold futures contracts through commodities exchanges, where the price of this precious metal is actually determined. For the average investor such speculation is not a good alternative.

Active investors simply buy gold stocks. All it takes to do this is to open an account with a discount stock broker. These stocks normally track gold prices. On a percentage basis, they usually magnify the gains and losses in gold prices. For example, if the metal price goes up 10%, the stocks may go up 20%. Active investors can invest in gold by picking specific stocks to buy, or they can invest in a basket of gold stocks by buying shares of an ETF (exchange traded fund).

Now we address how to invest in this precious metal, the best way if you are an average investor with little investing experience. Look no further than mutual funds, specialty funds. Gold funds are specialty mutual funds that hold a portfolio of gold stocks. When you buy the fund, you are invested in gold stocks that track gold prices.

Few 401(k) plans offer these as an investment option. If your retirement plan at work does not, you will need to find your own. You can trust a financial professional like a financial planner, and pay sales charges and/or other fees. Or you can save money with a little effort.

How to invest and save money: invest in no-load gold funds. These have no sales charges, and yearly expenses are normally quite reasonable. The two largest mutual fund companies in America offer no-load gold funds: Fidelity and Vanguard. You can call them toll-free, or go to their web sites. They will be more than happy to help you open an account. Once your account is open and you deposit money, you are ready to invest.

Plus, these major mutual fund families offer a wide array of other no-load mutual funds to choose from. For example, you might initially park your money in a safe money market fund. At will, you can later move part of it to stock funds and/or bond funds. You can open an individual account, joint account, or IRA account. You can rollover your retirement fund assets to a mutual fund IRA.

The more you understand how to invest, the more you will appreciate the advantages of investing in no-load mutual funds. If you want to invest in gold, look into gold funds.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com

Article Source: http://EzineArticles.com/?expert=James_Leitz

Investing in Gold Coins Guide

By Sebastian Tenier -

Investing in gold coins is a great way to put your assets in a secure, solid, and safe location. Gold bullion has been, and continues to be, a stable and smart investment commodity. When just starting out, it’s good to invest in gold bullion coins. They are small, easy to store, and have a low premium over the actual price of gold. Almost every major country has one or two different gold coins they mint and make available for purchase. These coins come in various sizes, from one troy ounce to a quarter of an ounce to even less. These coins also hold a collectible appeal to investors, so they often sell for slightly more than an equal weight bold bar.

The South African Krugerrand, Canadian Gold Maple Leaf, Australian Gold Kangaroo, Chinese Panda, and American Buffalo gold coins are just a few of the many popular coins out there. Before you make your first purchase though, be sure to do your research. Check the date of minting, the condition of the gold, the wear and tear of the coin, and the amount of circulation it has seen. These factors greatly impact the value of the gold coin. Even slight changes can lower or increase the value greatly.

Although some will tell you different, it doesn’t matter what kind of coin you invest in. Each will be valued differently depending on the popularity and need. It’s good to invest in a wide variety of different gold coins, that’s called spread betting your gold investment. Since the Canadian Maple Leaf is pure gold, it is very popular with collectors, but be careful when buying and storing, it will bend and scratch easily since it is 100% gold.

A great place to find the actual going rate of a particular gold coin, and even a place to purchase them is to buy gold on Ebay. On Ebay you can quickly gauge the free market value of a coin you are looking to invest in. You can see how much it is selling for, and how popular it is by the amount of bids as well. Ebay is a great place to buy gold as all your purchases are backed and insured by Paypal and Ebay itself. Although gold prices rise and fall, different coins have varying values depending on rarity and quality. Don’t forget you are not just buying gold, you are also buying a collectible.

Before you invest in a gold coin, be sure you know the actual value. Also have an idea of where the gold market is heading, if now is the time to buy or sell (hint: now is the time to buy, all indicators are pointing to gold prices rising even higher in the next few years). Your gold coin purchase is a long term investment, so treat it as such. Do not panic if the price of gold falls a few points on day, and raises the next. You are in this for the long haul. Investing in gold coins is also a much better choice than buying gold shares or gold stocks. These Gold ETF’s are dangerous, devalue with time, and do not represent the actual gold you own. But that is for another article.

The best choice you could make in this uncertain economy is to take control of your money and assets. you’ve seen what happens when you let others play irresponsibly with your hard earned wealth. Investing in gold coins is a way to take back that control and put your money into a solid gold commodity that has not lost value in thousands of years.

Learn more about buying verinvestments.com]gold bullion coins and take control of your money today! We offer guidance on how to buy gold in simple terms so that everybody can invest for success during this recession. Take action today, and invest in gold bullion!

Article Source: http://EzineArticles.com/?expert=Sebastian_Tenier

Let’s Look At Gold

However, the demoralized level of sentiment has opened up a new window of opportunity to cherry-pick those top-quality gold stocks for which we normally must "pay up." These are the "alphas." These are companies that either can generate ...

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