What is the best way to invest in gold?
Question:
Answer:
You can buy jewellery or gold bars or go for something more like...Gold-linked bonds and structured notes
>A number of the world's largest bullion dealers and investment banks issue gold linked bonds in various forms. Typically, these products provide investors with some combination of:
1-Exposure to gold price fluctuations
2-A yield
3-Principal protection
This link has some good stuff you can check - I use it to track the troy ounce price every day to keep a watch for one client...
You can register to this web and access more on gold...talk to a investment advisor as well...their are other good commodities too...
I would look into the ETF with the ticker "GLD" as an easy way for a retail investor to buy gold. Basically the price of GLD tracks the price of the traded commodity less certain expenses (for the fund management company).
Investing in mining companies introduces company-specific risks (eg management execution) that the actual commodity doesn't have. In addition, the share prices of mining companies tend to be more volatile/risky than the price of the underlying commodity.
As for buying real gold and putting it in a safe-deposit box, the ETF eliminates the hassle of physically storing and securing gold for a reasonable management fee.
buy it
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