E-Gold: How To Invest In Gold Online

By on December 30, 2012

Most people, with or without an active interest in commodity investment, will by now have heard about the increasing value of investing in gold.  With the dollar fast fading and the global recession encouraging people to seek an increased level of financial security, it is the world’s most popular precious metal that is coming out on top.

Purchasing gold seems like it must involve some inside knowledge or at least a trip outside the house, but these days the internet has removed that necessity.  Simply by heading online and visiting the right sites, you can not only receive the necessary advice and guidance, but too purchase or sell your gold.  Such investments can come in a number of ways, and below, we are going to introduce you to some of the methods.

Online Gold
There are all manner of sites where you can purchase gold, and in a wide variety of forms.  There is bullion, coins, stocks and shares.  They each have their unique flaws and benefits, and the best choice depends upon the size of your investment, existing portfolio, and expectations.  We will take a quick look at some of the most popular approaches below, and in doing so help to guide you towards your best gold investment option.

Coins
Gold coins have been used as legal tender ever since they were first produced, in 560 BC.  These days, investors can purchase a wide range of coins from governments around the world.

Bullion coins can be traded in as tender for their face value, as opposed to their gold content, or alternatively their market value can be based upon their fine gold content with an additional premium mark up, depending on the coin and the dealer.

In addition to bullion coins, it is also possible to invest in commemorative coins, whereby the value is dependent also on rarity and condition.  It is possible to buy either option from a number of online dealers.

Bullion Bars
Fundamentally, gold bullion is the same as bullion coins, although it is usually reserved only for larger investments.  Due to the production cost, storage and security fees, buying just a small amount does not give good value for money.  The more you buy, however, the lower your premium, and thus the better the value of your investment will be.

Stocks and Shares
There have been recent reports of the increasing trend of investors trading in their bullion for shares.  This is largely because the gap in price of gold bullion and gold shares is at its widest ever, and the popular belief is that this gap will eventually close.

Also with stocks and shares, you don’t have to pay any additional fees for storage or insurance, although too, the investment is not quite as secure as physical gold and can be impacted by political shifts, in particular.

Still with gold’s renaissance set in stone, the fact that you can buy stocks at their lowest rate in a quarter of a century has to be seen as an attractive prospect.  There are numerous online platforms through which you can purchase and learn more about gold stocks.

In Conclusion
In addition to the methods mentioned above, you can of course also purchase jewellery for means of a gold investment, and this works in a similar way to commemorative coins.  Although, as a pure gold investment, this method may not be the most efficient, it is useful to know that any gold you currently have, in the form of jewellery, can be traded in for cash.  This can also be done online, and can work for jewellery, coins and even dental fillings.

Gold is seriously hot property at the moment, and all of the above mentioned methods of investment can be done online, without having to leave the comfort of your own home.  The general rule for smart investment is diversity, and thus, it makes sense to combine coins, bullion and stocks and shares, within your portfolio.

Like all investments, gold won’t stay so profitable forever, and now seems as good a time as any to redistribute some of your wealth.

Jason is new to the blogosphere. Help him fit in by following him on twitter @jasonj

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