How to Invest Money in Gold

There are many ways to invest in gold. You can make 500% in gold stocks or 50% in gold bullion coins or bars. You can even make a 1000% in futures or options… or you can lose it all.

Gold has gained 1353% in the past five years. Along with those gains came new gold investors. And as the number of gold investors increased, so did the ways to invest in the yellow metal – some as safe as gold, some riskier.

There are a number of ways to invest in gold and make money when its price rises. Some are more suitable to the average investor than others. You don’t need to own the stuff physically to make money in gold. If you are interested in investing in gold, here are some investment options for you.

Something exciting recently happened to the gold spot market: it reached a 28-year high of $842 per ounce. While institutions are dumping equity investments like there is no tomorrow, a proportion of their free money is being piled into gold. By the nature of the stock market, this is pushing its value steadily higher, creating dramatic money-making opportunities for private investors willing to speculate.

Even today when gold is no longer used as a currency, the precious metal has not lost its allure for investors. Gold retains its usefulness as a hedge against inflation. In uncertain or recessionary economic conditions it’s an excellent way to avoid the losses that can befall even the stock of a well-run company. Despite its mystique, there is nothing magic about gold. In order to invest money in gold intelligently and profitably, you need to know the types of investments available and how gold pricesfluctuate in response to economic conditions.

If you learn to invest money in gold the right way, as in being educated before you start, it will serve as a stable investment alternative to a fluctuating stock market. Gold holds its value and even appreciates significantly when the economy is unstable. Therefore, all those smart people that have their extra coin in gold are probably cashing in right about now while everyone who had their money in stocks are probably sitting here reading this article.

As a final note, most investors should invest money in general diversified stock funds, bond funds and money market funds as well. If you decide to cut your investment in any of your funds you can simply switch money to another fund in the same family or investment company. By investing your money in mutual funds you can keep your investment assets under one roof and have the flexibility to make changes when you see fit.