Gold is at its most expensive in the history of history. There is talk that it's going past $2000 an ounce soon. So does this mean that if you are late to the party, if you're still trying to figure out how to invest in gold, that it's no use anymore?
Well, that is possibly the case in some ways. People do wonder how much higher gold can go. What if gold has already peaked and won't really go anywhere but down in a few weeks? If the economy grows any worse, you can expect to see your investment continue to rise. In uncertain times when the dollar is weak and the stock markets are uncertain, investors usually turn to the mother of all investments looking for something that can never fail gold. Even if everything else goes to pot, humanity agrees that it will never let the value of gold disappear.
While it won't actually disappear, if the economy improves somewhat quickly, investors will be pulling their money out of gold and putting it back into the stock market. If investors sell gold to take money out of it, the market will be flooded with the stuff and its value will fall to more reasonable levels. It'll never turn worthless like stocks or houses can; it'll just begin to reflect more reasonable values. If you are trying to figure out how to invest in gold, you do have to prepare for how nervous it will make you to put all your money in such a volatile investment. But you can relax it's never going to crash the way the stock market can. Here's what you need to know about how to invest in gold.
Investing in gold, buying the yellow metal directly in the form of coins, bars or jewelry is the most common way to go. Usually, you go to a jewelry shop or a gold provider. EBay happens to be a very popular destination for gold purchases too. Actually, they've reported a major bump in their gold sales for a month or two now. There are lots of online businesses that sell you gold Bullion Vault and Golden Eagle Coin are important ones. At one time, all currency was in actual gold. The government and the mint would just circulate actual gold coins. At one point, they realized that it was very easy for private individuals or even an unscrupulous governor of the mint to take genuine gold coins for themselves and replace them with gold alloys. No one would know the difference. That's why governments around the world decided to use representative money paper money that represented gold that was kept in the central bank.
When you buy gold, you have to make sure of the same thing that you are being sold pure gold and not some alloy that looks like gold. Buying from a pawn shop or eBay, you can never be sure that you're getting pure gold. Not unless your gold comes with a letter of authenticity do you trust in your purchase.
But if you're just beginning to learn how to invest in gold, often, staying away from the actual metal could be a good idea. You could buy gold stocks or gold exchange traded funds. This could be more or less the same thing you invest in a fund that employs experts to buy and store gold. You don't have to worry about how to store your gold as you would if you bought the actual stuff.