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How to invest your money in gold

In times of trouble the cautious investors rush for the solace of the shiny yellow stuff. You may be tempted to follow them and invest your money in gold. We looked at how to do it.

You have a choice of investing in funds that follow the gold mining companies, Exchange Traded Commodities (ETCs), or direct investment in bullion and coins.

Shares funds tend to be more risky than investing in the stuff itself, but can be lucrative. Blackrock Gold (www.blackrock.co.uk) invests mainly in the shares of mining companies so the increase in value of gold usually entails an increase in share values.

ETC commodity investments are more directly linked to the price of gold, which fluctuates daily, and can be tracked at www.exchangetradedgold.com.

Buying bullion and coins gets down to the most basic level of investment: buying shiny metals and hoarding them. In most cases you are buying by pure weight, although in the case of some gold sovereigns there is an opinion that their historic status adds value over the more common krugerrands.

Reputable gold dealers will feature on the list of the London Bullion Market Association at lbma.org.uk. Bear in mind that there will be a fee to store gold with your bank or broker.

One shortcut into gold is offered by Gold Made Simple (www.goldmadesimple.com), providing simple online dealing in coins and bullion, free secure storage and low broker fees. If you want to invest your money in gold, this may be the simplest way to get started.

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