by Margaret Dilloway
Looking for something different can try investing in gold. There are essentially two ways to invest in gold: buy gold bullion and small bars, or trade in gold futures. Buying Gold If you want to buy gold that you can see, touch, and feel, consider buying gold coins or bullion. The advantage is that, when other markets have plummeted, everyone still wants to buy gold. Gold bullion coins are produced by many countries around the world. The most common weights (in troy ounces of fine gold content) are 1/20, 1/10, ¼, ½, and 1 ounce. The fine gold content and a mark-up from the dealers, determines the market value. These coins are different from numismatic and commemorative gold coins, whose value is also dependent on their rarity. The worth of bouillon coins is determined solely by how much gold is in them. Small bullion bars can also be purchased. These have a minimum of 99.5 percent of fine gold content. The small bars come in sizes from 1 gram to 1,000 grams. The World Gold Council has a list of dealers from which you can buy bars as well as coins. Gold Futures Gold futures are more speculative. When you engage in gold futures speculations, you don't ever see the gold. Instead, any transactions are handled through a clearinghouse. Gold Futures can be rather confusing. It is a business for those who don't mind speculation. The upside is that you invest only a small percentage of the contract price in order to have a chance to buy or sell the gold. Then, you lose only a little money, as compared to losing larger amounts from buying the gold without a contract. You can also profit a lot, if the prices go the way you think they will.
