Gold Money - Different Types of Gold Currency for the Average Investor

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Posted on: 25th Jun 2014

Investing in gold money is not the secret beast that it is presented to be. Like any type of commodity, gold investing can be very profitable. However, to do it wisely, you must educate yourself about the different types of gold investments, and take the safe steps needed to build a powerful investment portfolio. This post will briefly examine some of these investment types.

Raw Gold
Raw gold, also referred to as physical gold, comes in two forms. The first form is gold coins or bullions, and the second is gold bars. The safest and least expensive gold coins are by reputable government-back gold manufacturers such as American Gold Eagles, or Canadian Gold Maple Leafs. Make certain that you buy these coins from either highly regarded local dealers, or from notable online gold coin dealers like Gold Masters USA, Monex Precious Metals, Tulying, Kitco, and Blanchard.

Gold Exchange Traded Funds
You can invest in gold as a stock traded fund, otherwise known as Exchange Traded Funds or ETFs. Gold is generally traded as an index on stock exchanges in the United States and globally. You should be very cautious with any type of ETF due to their volatility and uncertainty. Do research before you decide to go forward. Consult a good brokerage company, and then begin building your portfolio carefully and gradually. The best companies that most investors highly recommend are Fidelity, Schwab, and TD Ameritrade.

Gold Warrants
With gold warrants, the warrant holder buys gold stock in the company that issued the warrant at a specific price, and on a particular day. There are two types of warrants. The first type is called �call warrants�, which allow you to buy a company share at a predetermined price. The second type is called �put warrants, and they allows you to sell the share when the price falls. Like ETFs gold warrants are risky gold investments, and should therefore be dealt with carefully. Please consult an investment broker before taking further steps to invest in them. The gold warrants that are currently available are Australia Gold Warrants through Perth Mint Gold (PMG).

Gold Account
You can also store gold in a gold bullion bank. To do this, you will first need to open either an allocated or unallocated gold bank account. An allocated gold account is the most secure, and yet the most expensive form of gold investment account. This is because specific gold coins and/or gold bars are allocated for each investor. On the other hand, an unallocated gold account is least expensive, but is far riskier, because the gold products are not allocated for each investor. Be sure to consult a brokerage firm before proceeding.

Gold Certificates
Gold certificates are gold paper assets that you can hold as an investment without actually possessing physical gold. While gold certificates carry hold some value for the investor, they are not as strong in value as holding actual physical gold. Therefore, be sure to combine your gold certificate ownership with your actual gold investments.

Gold Mining Stocks
Gold mining stocks are very attractive to investors due to their high returns. However, they are also very high-risk investments, and therefore must be handled cautiously. Two great online resources for gold mining stocks are Gold Mining Stocks and Gold Stock.

Gold Derivatives
Gold derivatives are contracts that you can buy or sell another security at some future time. The three major gold derivative contracts types futures, options, and swaps. All of them have their own level of financial risk, which are quite high. To learn more about them, you should consult a brokerage who specializes in gold derivatives.

Conclusion
As you may have noticed, there are different ways to invest in gold. You can look into any of these investment methods, and determine which of them suits you. Investing in gold is a lucrative and serious business. Therefore, you take the time to investigate, and slowly build your gold money investment portfolio.

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Gold Money - Different Types of Gold Currency for the Average Investor

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