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September 10, 2009 - Many investors who are new to gold often wonder what constitutes safe gold investing. There are a few guidelines that one may wish to follow in order to ensure safe gold investing. The gold spot price is up slightly for the day, causing many large financial institutions and household investors to diversify into precious metals for the first time. When a large percentage of a population migrates into gold, it usually indicates a lack of faith in traditional ways to store wealth, and this is what experts at the Wall Street Journal say is happening now.

Gold is available to investors in a wide variety of forms. Gold Exchange Traded Funds allow users to track the general price of gold, and these funds send investors a certificate stating that the owner holds a certain number of shares of gold. However, many investors are looking for security inside a volatile portfolio, and unallocated ETFs which track the price of gold may not be backed by any actual gold. An audit of these companies could reveal that the shares of gold do not have real gold allocated to them, and this could drop the price of the ETFs drastically overnight. Investors who want the gold in the palm of their hand opt instead for gold bullion bars or coins, and sometimes certified rare coins. Bullion is the type of gold that short-term investors look for, because it trades close to the spot price of gold, which allows for quick profits. Certified rare coins are only a safe investment for those who are looking to hold long-term. Most certified coin investors are more concerned with safety than quick profit, so they purchase government non-confiscatible coins graded by the Professional Coin Grading Service and the Numismatic Guaranty Corporation.

Thursday was a slow day in most major markets, with the Dow Jones Industrial Average and the Nasdaq platforms posting slight gains along with gold and silver. Gold investors took advantage of Wednesday's slight price drop from the $1000 range, picking up bullion items at prices based on Thursday's $996 spot price. PCGS and NGC coins averaged a 1.8% gain across the board. Stay up to date with the price of gold at www.goldprice.net and www.pcgs.com.

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Arthur McGuire

Senior Staff Writer - Gold-Investment.info