Tuesday, March 8, 2011

Ten Ways To Invest In Gold

The Telegraph has webbed an article explaining ten different ways to invest in gold. One is only available in the U.K.; unfortunately, it's the same one as comes with a break from capital-gains tax.

The ten are:
  1. Gold bars, whose premiums are lower as they get larger;
  2. Gold sovereigns which count as legal tender in the U.K., making them the tax-free option for U.K. subjects;
  3. Kruggerands (or other bullion coins like Maple Leafs);
  4. ETFs like the SPDR Gold Shares Trust (GLD);
  5. Unit trusts and/or investments trusts, of which the Sprott Physical Trust (PHYS) and the Central Fund of Canada (gold and silver) are North American examples;
  6. Gold accounts, providing a claim on stored gold which may be allocated (segregated) or unallocated (pooled);
  7. Shares in gold miners;
  8. Jewelry, which does carry a hefty premium but might keep up with inflation (if, say, bought and later sold on eBay);
  9. Gold certificates issued by a bank, making for a claim on usually unallocated gold;
  10. Structured bank products, whose returns are influenced by the performance of a commodity, commodity basket or asset class; there are ones that are tied to gold.

Evidently, gold investing has come a long way from the plain old days when investing in gold meant buying Krugerrands or old sovereigns.

No comments:

Post a Comment