Many people may be wondering when to buy gold and what is the best time for such investments. The price per ounce of gold keeps fluctuating on an hourly basis and the gold trends fluctuate according to the value of the dollar. However, the value of gold still remains the same as one ounce of gold will still purchase an equal amount of goods that it could purchase fifty years before. The value of the currency is affected but not the value of gold, though the price is affected.
There are many ways of investing in gold which can give you good returns due to the high price per ounce of gold. The best way is to own physical gold in the form of coins and bullions. This is the conventional method of investing and you can buy them from government mints. They are legal tender and naturally more expensive, but the premium is quite small. The popular minted gold coins are the Canadian Maple Leafs, the 1 ounce South African Kruggerands. Another popular minted gold coin si the American Eagle Gold coins.
Another very profitable way of investing in gold is the Exchange Traded Funds or ETFs. These are gold stocks that are backed by holdings of bullion by the company and have comparatively less risk. It is a very practical way of holding gold stocks. Another way of investment, considering the price per ounce of gold, is the Gold Mutual Funds. If you don’t wish to be burdened by the possession of physical gold, then this is a good alternative. A lot of leverage is provided in this case, as you can expand or curtail your risks. You can select the funds that have stocks in well established companies. You must also check out the profitability track records of the companies.
Junior Gold Stocks and Futures
Another option offered after viewing the price per ounce of gold is the junior gold stocks. They don’t have their own production mines and it is more prone to risk, as it is only in the gold exploration stage. The return on this kind of investment can be a little volatile.
A very experienced investor can go in for gold futures. This is a comparatively cheap way of buying gold, but is also open to risks. It is a complex method of investing but could possibly reap rich rewards. Whatever by your choice of investing, gold is a very tangible asset and can be used to balance your investment portfolio and give it the much needed balancing factor against sudden losses in other forms of investment, as the opportunities for gain is constantly present.