Which Gold Investment Should You Choose?

Author: Ian Davis - Bullion Manager

Published: 19 Nov 2018

Last Updated: 10 Aug 2019

What Is The Best Way To Invest In Gold?

Here are a few popular ways to invest in gold:-

  • Gold Accounts
  • Gold Futures
  • Gold Mining Shares
  • Gold Bars
  • Gold Coins

Gold Accounts

It is possible for serious investors to have gold accounts with major banks. In many countries such as the UK, this is not easy, as there is little tradition of banks offering gold account and dealing facilities. Accounts are usually only available with "private bankers" for individuals with a few million to invest. You may wish to read our page on our storage facilities and store gold with Chards. This way you remain in control of your investment, the gold is independent from any balance sheet and there is no cost to withdraw your metal, even at 24 hours notice!

Gold Futures

This is a highly professional market, but is more for the speculator than the investor. It is essential to use a trustworthy commodity broker, as there are many potential abuses and pitfalls.

Gold Mining Shares

This is probably the best way to make a "paper" investment in gold. There is a simple theory that when gold bullion prices and demand increase, then gold mining share prices will follow. Some mines fully hedge their future production so the theory does not always hold true for all producers. Mining shares in general can be quite risky.

Physical Gold - Bars

Taking physical delivery of your gold is a very safe way of investing in gold. Gold bars are one method of achieving this.

Various Gold Bars In a Stack

Physical Gold - Coins

Gold coins are often more convenient than bars, and can often be bought for lower premiums than bars, weight for weight. There is a large selection of gold coins available. The first decision is often whether to buy older coins or new "bullion" coins.

1972 Krugerrand Coin

Further Reading

You may wish to view all of our articles on our gold guide

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