October 28, 2009 – There are many ways to invest in gold, and the recent fluctuations in the gold spot price have influenced many investors to research the most popular gold investments. There is no one “best gold investment” that provides miraculous results for all investors. Rather, each individual must choose a gold product based on their specific goals and expectations. Let’s briefly discuss two types of gold that are considered “investment-grade.”
Gold bullion investments are a traditional way for investors to get their feet wet in the gold market. Gold bullion comes in bar and coin form, and investors can purchase gold bars in increments as small as one gram. Gold bullion prices closely track the active gold spot price, which is currently at $1041. Many long-standing companies like Engelhard and Johnson-Matthey manufacture gold bullion bars that have assigned serial numbers and guaranteed 0.999 purity. There are also a wide variety of gold coins that have been produced by government entities such as the US Mint. The $50, $25, $10, and $5 American Gold Eagle coins have become a familiar gold bullion coin within the United States and abroad. Gold bullion items like the $50 Gold Eagle may be the best gold investment for individuals who do plan to hold short-term.
Investors who would prefer a long-term position in the gold market may choose a different type of acquisition. Certified gold coins may be the best gold investment for Americans who want to hold their gold longer than 14 months. These coins historically provide accelerated growth for long-term investors, even if the gold spot price is repressed by malevolent government intervention. Certified gold coins like the MS63 Saint Gaudens and the MS61 Lady Liberty have outpaced gold bullion’s growth two-to-one during the last five years, and their private status is an attractive draw for many safety-oriented investors. All investors are encouraged to contact a reputable gold dealer who can further explain the advantages of gold bullion and certified gold coins.
Stewart Lawson
Senior Staff Writer - Gold-Investment.info