You can get gold in form of the metal, mining stock or the mutual funds. It works more or less like the dollar though it has an advantage over the dollar this include when the dollar falls the gold rises in value. Hence gold can be a good way of investing.
Here are 4 ways you can buy gold:
Lately people are buying more gold via the Bullion Vault compared to other ways, this is because it has already available gold. It had 32 tons of gold. Each ounce of gold usually has its owner and each is stored in Bullion vault. There are many different locations of bullion vault worldwide. The amount of gold in Bullion vault can either go up or down depending on the customer demand. When the customer buy stock, the bullion vault replaces the bought stock by buying from the professional market. It is the best for many customer this is because it does not have middlemen hence it becomes much cheaper.
It is the acronym of exchange traded fund. It works similar to the stock exchange we are used to, the gold is in form of mutual funds. They are usually fixed and do not change. There are usually 2 gold ETF which can be traded in the United States, they have common symbols which include GLD or IAU. It usually allows access to the different type of gold as stated above.
There are two type of gold stored in ETF, this include allocated gold which is held by a person known as custodian. He usually has a list of all the bars and who they are allocated to on a daily basis. He audit twice annually. The other is the unallocated. This is where they use contracts in case you want new share and time is not on your side where you can buy and take it to the bullion.
It is also known as exchange traded note. Through the ETN you can gain access to the value of the gold in dollar. You are able to invest in movement of the price of the gold without being affected by the dollar or rand. Some of the popular ETN are DB Gold Double Short ETN, DB Gold Short ETN (DGZ), UBS Bloomberg Gold ETN (UBG), and DB Gold
Double Long ETN (DGP).
With ETN is very risky this is because you can lose your money instantly. This is because it has principal protection.
Can also be known as mining stock. This is also a risky way of investing on gold but it does work. This is because one trade on a bigger and broader market. There is always leverage whether the gold price goes down or up. It is very wise to not sell the gold stocks at this time. It is a time that can lead to big losses.
It is good to consider the number of gold stock you are ready to risk. If it is too less well this is way too much risk if many it still has its own risk.