The simplest way to buying physical gold is to procure bars and coins. The practice has been widespread for a long time and continues to be a favorite of many people that enjoy having physical possession of this precious metal as a kind of investment. Possessing gold in its physical form brings peace of mind to many.
However, one must be careful and do some homework when buying gold. It is reported that Chinese-made counterfeit gold coins are in circulation in the US market. So, you should stick to buying gold coins produced in government-owned mints only. Often, these are sold at a premium. Some of the recommended gold coins worth buying are the American Eagle, Canadian Maple and South African Krugerrands.
Gold Mutual Funds
The benefits of buying mutual funds are well-known. Investing in gold mutual funds allows you to expand or restrict your risks. When considering to invest in such mutual funds, look for funds that have stocks in companies using modernized techniques of mining and purifying the metal. You stand to profit more through such companies, compared to old companies following the traditional style of mining, or those that are rather new in this business.
The latest trend is to buy stocks of SPDR Gold Trust ETF. This is an exchange traded fund (ETF) and its working is just like any other stock or a mutual fund. The main benefit of this kind of investment is the fact that you are saved the hassle of looking for a source for the gold and you also avoid any expense for its safe storage.
Junior gold stocks
If you have the capacity to take more risks, you can invest in these stocks, which are most likely not to have their own mines. Generally, they are occupied with the exploration of gold and thus more prone to incur loss. Their capital is quite low, compared to matured gold companies.
Unless you are a highly experienced investor, you should refrain from this activity. This is easily the most difficult form of investing in gold and it is very risky. Trading in gold futures is too difficult to be understood by majority of investors.