Since my last post on gold ‘Gold(en) Nuggets To Beat Economic Instability’ back in July, gold has continued to go up setting a new high of $1,414.60 an ounce last month; as well featuring more prolifically in the mainstream news. That does not mean however that the Gold Bull Run has exhausted itself. No, not all!  Gold (and silver) will continue to rise as long as the global governments continue to manipulate the money markets and inject more money into the economy by printing it aka quantitative easing. Most gold experts believe it could go up to $5000 an ounce, thus $1100 will seem like chump change in the not too distant future.

As such I thought I would write a complimentary article about the different ways to invest in gold as there are numerous. Below are the most common: -

Bullion Coins

It is widely acknowledged that the first pure gold coins were found in Anatolia (current day Turkey); in modern day UK the most popular gold coins to invest in and own are ones produced by governments such as the South African Krugerrand, the American Gold Eagle, the Canadian Maple Leaf and of course the British Britannia – on which you do not have to pay any tax on, as it is British. The price of these coins depends on the gold spot price plus a premium of between 6.5% – 8.5%.

The benefits of investing in gold coins are that you can have them on your persons, they are more mobile than bars of gold and are the most popular way to invest/purchase gold for the masses thus easy to sell/exchange.  Because they are standardised, dealers generally do not test these for their purity.

Numismatic Coins

Is another type of gold coin that typically has a higher value then its face value due to its history and age; for example coins that are considered rare or ancient will often have a significantly higher monetary value than the suggested value. Numismatic coins are highly coveted by coin collectors because of their history and potential value; thus is another way to invest in gold.

Bullion Bars

Gold bars can be sold in various sizes and weights but the most common are sold in 100 gram, 50 gram and 1 kilo weights. One of the key difference between coins and bars is that bars carry a lower price premium then coins, however the larger the bar the higher the possibility of fraud. It is for this reason that the Argor-Heraeus refinery in Switzerland introduced the kinebar – a gold bar which carries a unique holographic technology – to combat gold bar counterfeiting. There is a premium to purchasing a kinebar but at least the owner is assured that their purchase is 24K, 999.9 gold.

ETFs

Exchange Traded Funds is a fund that trades like a share and has become quite popular over the  last several years as it is an easy way to gain exposure to gold without the worry of storing physical bars. It has, however, come with its problems the main one being its complex structure and questions raised about the validity of the gold, ie, does it exist. Ultimately with anything one does you should do your research and due diligence to ascertain which gold investment is best for you and your money.

In addition to the above one can buy gold via mining stocks, certificates, jewellery and stocks and shares, such as spread betting and futures. For more information on the various ways to purchase gold please review the following links below:

• http://en.wikipedia.org/wiki/Gold_as_an_investment
• http://www.moneyweek.com/investments/precious-metals-and-gems/a-beginners-guide-to-investing-in-gold.aspx
• http://www.thisismoney.co.uk/investing/tips-and-guides/article.html?in_article_id=476949&in_page_id=53934&expand=true#StartComments
• http://www.taxfreegold.co.uk/goldcoinsbriefhistory.html

To end, here are some interesting facts for you to ponder regarding purchasing gold –

Gold Prices since 1970

1970 -        $38.90
1975 -      $139.29
1985 -      $327.00
1990 -      $386.20
2000 -      $279.11
2005 -      $444.74
2009 -      $972.35
Today – $1,414.60
2011 – How much will you own?
2012 – How much will you get for free?

So the question is not if you will buy gold but how will you buy gold and when you will buy it?

To help answer this question for you, I am hosting a webinar tonight – Tuesday 28^th December at 8pm GMT and tomorrow Wednesday 29^th December at 2:30pm GMT – on this very subject, and how you can purchase gold in a cost effective, safe and simple way. The link to join the webinar is http://TV.ButterflyWealthCreation.co.uk

I hope to see you there and here’s to YOU making your 2011 a GOLDEN one!

To Your Financial Success,

Butterfly Wealth Creation

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