Investing in gold elf, or gold exchange traded funds, is beginning to look like a good idea to the savvy investor. Gold has been a valued resource since th dawn of time and since it’s not readily available and the amount of gold is finite, it will only continue to go up in value.
Buying gold has long been the strategy of investors to hedge against inflation and the debasing of the U.S. dollar. Since gold prices (and those of other commodities) go up in direct correlation to the value of the dollar going down, now might be a great time to jump right in.
When buying gold you actually have a few options. You can buy gold coins. Many times these coins will actually be worth more, sometimes much more, than their face value. The total value will depend on how much gold these coins consist of. Since gold is a soft metal gold coins will have other metals added in, usually copper and silver.
The amount of other metals will mean that the gold coin you have doesn’t have as much gold in it so it won’t be worth as much. American Gold Eagles are one of the most sought after gold coins available.
You can also buy gold bullion. These bars can be purchased in various sizes. You can take possession of them or find a company that will keep them for you. If you go that route make sure that you have assurances that you really do own the bullion and that it is insured so you won’t be out your initial investment should something happen.
Another way to own gold is to invest in gold mining companies. This can be lucrative but remember, you ultimately don’t really ‘own’ anything. The shares you have in the company are only as valuable as the company itself. If the company goes under, you’re out of luck.
Electronically traded funds are also stocks that you can buy in companies. In this case you are buying stocks in companies that own gold. Not necessarily in the mines themselves but in actual gold reserves. Again, you don’t actually own the gold and your investment is only as good as the company you’ve purchased the stocks in.
If you do choose to go with the physical gold, whether in the form of gold coins or bullion, just remember that you’ll need a secure place to store it. Bullion is heavy and if word gets out that you have a basement full, you’ll have to worry about a lot more than just lifting it. You might well be robbed and possibly killed. Keep quiet.
Of course, you can also have your bullion or coins stored for you in a safety deposit box at your local bank. That should provide you with a lot more security. Still, it’s a good idea to keep your assets to yourself.
When thinking about investing in gold elf, just remember that if you don’t actually have the physical gold in your possession than your investment is only as sound as the company you’ve bought stock in. Choose carefully.