Monday, June 30, 2008

Buy Gold

Experienced investors have long known that gold can be a solid investment choice. It's stable in times of worldwide uncertainty, or when the economy is bad. Used correctly, it can be an effective component of a diversified investment portfolio, but remember, it is an investment like any other, and has an element of risk (albeit more modest). It's essential to achieve the proper mix.

Be familiar with the five principal ways to invest in gold: tangible coins and bars; certificates; precious metals mutual funds; stock in mining companies; and gold and metals futures.

Go with coins or bars if you're interested primarily in safety and diversity.

Break down tangible gold into its subcategories: bullion and numismatics. Gold bullion (or bars) is pure or almost pure gold. Numismatics are minted coins, which often commemorate special occasions.

Search for both online and brick-and-mortar precious metals dealers. Find out how long the dealer has been in business, whether he or she specializes in one segment of the market, and who the typical client is.

Shop around. The markup on coins and bars will vary. One popular choice for coins is the 1 troy ounce size as they are easy to buy, sell and store.

Educate yourself about the numismatics market. The design and condition of a coin can affect its price as much as the gold content itself.

Choose certificates if you would rather not store anything. A certificate represents ownership of a certain quantity of gold.

Consider stocks and funds for additional choices. Gold funds, because they are diversified and managed, are the most stable. Stocks are less stable, because you're buying into only one company.

For a higher risk/higher potential return alternative, consider gold futures if you feel confident of your ability to predict whether the value of gold will increase or decline. Futures are a contract to buy or sell at a particular price at a specific point in time. Doing well with them depends solely on what happens to the value of gold during the contract term.

For more information please view WWW.QUICK-INVESTMENT.COM

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