There are many ways to purchase gold. The first consideration is whether you want to have actual possession of the gold. In that case, you can purchase gold bars or gold bullion. Gold coins have an intrinsic value over and above the actual gold content. In purchasing gold coins, the value of the coins can vary widely from time to time.
In addition, when buying or selling bullion there will be a profit to the dealer. You can choose to house the gold bars or coins in a storage location for a fee. To personally take physical possession of gold bars may result in problems as to storage and selling. It is recommended that one deals with a reputable dealer.
You can purchase gold mining stocks directly or via mutual funds. Mutual funds have the advantage of spreading your risk. They generally follow the rise and fall of the price of gold. Holding stocks directly, increases the risk, but can generate greater profits or losses.
Exchange traded gold funds (ETF) are a higher risk investment with greater potential for profit or loss. Unless one is an expert in these transactions professional assistance is recommended. The same applies to gold futures. Gold certificates represent unallocated gold. Government backing is all important. The Perth Mint (Australia) is the most respected.
In summary, the most conservative way to own gold is bullion storage, gold coins or gold mutual funds. Gold futures, gold exchange traded funds and stocks, have greater risk (and potential) but as such, are much more speculative.
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