Gold Investment Vehicles (Part 1)

Gold Investing Strategies

Gold Investment Vehicles (Part 1)

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In a previous post, we talked about the concept of gold purity and how it affects the pricing of gold investments. In particular, we discussed about the karat system, which has been used for quite a time in order to measure the amount of gold and its alloys for a particular investment.

Today, we discuss about the different methods by which a prospective gold investor may be able to invest in gold. Saying that you are going to invest in gold is pretty straightforward. People can easily understand what it means to purchase gold, but unknown to many is that there are a number of gold 'products' and it is up to you to determine which is the most appropriate investment for your circumstances.

The most popular way of investing in gold for big-ticket investors is through gold bullions. Gold bullions are gold investment vehicles that have 99.5% fineness. They typically take on the form of coins, bars, and ingots, and have varying weights. They are usually sold in bulk and, as a result, only the richest gold investors invest in these.

In contrast, numismatic gold coins are gold coins that are also used as currency. They typically cost more than their intrinsic values, because they are currency, and so their values rely more on the rarity of the coins, their condition, and the history that comes along with them.

Gold bullions and numismatic gold coins require that the investor find a way to keep their precious metal investments. But how about those who want to invest in gold but want to own them remotely and without the need to bother with storage, insurance, and numerous paper work related to owning gold investments? This is what we have gold accounts for.

There are two kinds of gold accounts, unallocated accounts and allocated accounts. With allocated accounts, gold bullions are assigned to a specific owner and kept safely. This is a safer investment but the fees tend to be high because of the insurance and the storage costs. In contrast, in unallocated accounts, no gold bullions are allocated to a specific investor and they remain with the bank, which may be able to lend it to others. This is cheaper and riskier.

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Tags: • numismatic coins • gold accounts • gold coins • gold investment vehicles • precious metal • gold investment • gold investor • gold purity •

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