How to Find Investments in Gold

Now may be a very good time to find investments in gold for many that are concerned with inflation. In the past, gold has provided some relief against the effects of inflation. With the U.S. government printing money at unprecidented rates, it is believed that inflation will soon begin to rise. This article will help you find investments in gold so you can make your own decisions about how to combat inflation.

Difficulty: Moderately Easy

Instructions

1. Look into investing in American gold coins. There are two types of new American gold coins available, including the American Buffalo $50 coin and the American Eagle gold bullion coin. The American Eagle gold coin is a 22 karat coin in 1/10, 1/4, 1/2, and 1 oz weights. The American Buffalo is a 99.99% gold (24 karat) bullion coin that is also available in a proof version. Both coins are minted at the U.S. Mint at West Point. The regular Buffalo coin and the American Eagle coin are available at select coin dealers, but the American Buffalo proof is available directly from the U.S. mint.

2. Look into investing in foreign gold coins. There are different varieties modern gold coins offered in limited quantities by established governments. The gold coins include the British Sovereign with contains 0.2345 oz of 91.67% pure gold, the French 20 Francs Rooster coin which contains 0.1867 oz of 90% gold, and the Austrian 4 Ducats which contains 0.4438 Troy oz. of 98.6667% gold and 1.4333% copper. The purest gold coin available is from the Canadian government. It is the Canadian gold maple leaf coin an is 99.99% pure gold. There are different weights available including 1/20, 1/10, 1/4, 1/2, and 1 troy ounce.

3. To provide some added security for you investment consider pre-1933 American and European gold coins. Believe it or not, during the Great Depression, FDR by executive order made it illegal for U.S. citizens to own any gold. FDR's order was a result of a failing U.S. banking system (sound familiar?). The only exception to the order was pre-1933 American and European gold coins since they were considered collector's items. As of today the current law still protects these older coins.

4. Consider owning stocks of gold mining companies. The price of the stock may be effected by the price of gold but it is not guaranteed. Other factors such as the ability and cost of a mining company to extract gold from their property or mines. If the price of labor, oil, environmental costs, or other factors increase the cost of mining, then the value of the stock can be diminished even if the price of gold increases.

5. Take a look at gold futures. Gold futures are traded in the United States on the NYMEX under the trading symbol GC. Each trading unit is equavalent to 100 troy ounces of gold. The price of gold will certainly effect the futures price. This type of investment is very risk/reward oriented. Talk to your investment professional before purchasing gold futures so you can understand the risk involved.

Tips & Warnings

• Gold as in any investment has risk. Please make sure you understand the risks of this type of investment before you purchase gold.

Resources

• 2008 American Eagle $5 Gold Proof One-tenth with Box

[rnhealthinfo]

on 10/29/2009 Great article and interesting information on How to Find Investments in Gold. 5*

[sonni57]

on 10/28/2009 Thanks for the good info on gold investments.