Gold Essay

Gold is one of the most popular metals as investment. Because of its high and consistent value, it is considered one of the safest commodities to invest in. There are several ways of using gold as an investment. Gold can be physically bough in the form of bullion bars or bullion coins. Gold exchange products can be traded in major stock exchanges in the same manner as shares. These include closed-end products or CEFs, exchange-traded notes or ETNs, and exchange-traded funds or ETFs. Gold accounts can be availed from banks and their management greatly depends on whether it is an unallocated or an allocated gold account. Gold certificates used to circulate as money until the United States restricted private gold ownership in 1933. Buying shares in gold mining companies comes with structural, management, and political risks but investing in the right company at the right time can increase share prices to as much as 20%.

Buying gold bullion bars is the most traditional way in gold investment. These are easily bought and sold at major banks in some countries like Switzerland, Austria, Liechtenstein, and Canada. There are also bullion dealers that provide similar services around the world. Buying gold bullion coins is another common way of having gold and may be purchased through large and small dealers. It is safe practice to buy from reputable banks or companies to ensure authenticity and quality of the metal.

When buying gold, there are things that need to be taken into consideration. The purpose of buying gold will determine the kind of gold that is bought. One gold expert advised buying contemporary gold bullion coins if the purpose is prize movement capitalization or hedging financial uncertainties. Pre-1933 gold coins are good...

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... IRA. The retirement account is rolled over to an allocated gold account. This is a wise move to secure retirement earnings because the funds cannot be touched by employers in case the investor decides to leave his or her job.

Allocated accounts are considered as one of the safe haven investments to protect a person during times of inflation and economic crisis. Most allocated gold accounts are bought in the form of gold bullions. The most common type is the London Good Delivery with strict qualification of its purity and fineness of content.

Between unallocated and allocated gold accounts, most investors prefer the latter to the former. Before opening gold accounts or making an investment in general, it is important to seek counsel from a qualified financial advisor. This can help in determining what kind of investment is appropriate for the investor’s purpose.