If you are seeking out gold sovereigns for sale the net is a great place to begin

If you are seeking out gold sovereigns for sale the net is a great place to begin

Bullion coins are legal tender and free of capital gains tax. There are now a number of reliable storage facilities which guarantee security and which enable you to trade your gold holdings. GoldMoney and the Perth Mint are both excellent examples of ways to hold and trade gold and other precious metals without having to take delivery. Bullion will track the price of the metal, making it the least volatile way of holding gold. Rare gold coins can on the other hand be very volatile.

2. Gold Bullion Funds - This is a way of holding the 'virtual' metal by holding the shares of the trust. Each share is secured by gold bullion holdings which theoretically can be delivered in lieu of the shares. SPDR Gold Trust is the largest of these and has been the focus of significant buying activity by George Soros recently. And where George Soros is seen to go, many follow!

3. Gold Mutual Funds - If you prefer some gearing to your investment choices, Gold mutual funds are one of the safer ways to invest in gold stocks.There are now a wide range of gold funds, Blackrock Gold and General being one example. It has performed fantastically well since its launch in 1988 (note, near the bottom of the market) at 1 pound sterling per unit. It now stands around 11.50 sterling and has been as high as 13.50 sterling.

4. Exchange Traded Funds (ETFs) are securities trading on the stock exchange generally tracking the underlying index. One of the most popular is Market Vectors ETF (GDX) representing the BIG Gold companies, was launched in 2006 at $37 and has been as high as $55 and as low as $15. It now stands at around $44

5. Higher risk ETFs - Market Vectors Juniors (GDXJ) tends to be a notch higher in risk level. It was launched very recently in November 2009 at $26, and has already demonstrated swings of almost 20% in both directions. GDXJ represents a basket of fairly high risk equities on the Canadian Market which is reflected in its volatility.

6. Thus we have seen gold rise to over $1000 per ounce during the worst recession in three decades.

Over the past few months we've seen the price of gold head higher. Just recently many investment analysts have predicted the price to continue its meteoric rise with $1,500/oz sited by year end and $2,000/oz within the next 18 months. Over the past decade gold has returned an average of over 25% a year. Yet, still only a small percentage of investors own physical gold, especially in the UK.

Total net investment in gold from start of 2010 through to July 31st was $2.7 billion. Yet, in the course of the same period, investors poured $22 billion into emerging markets mutual funds and $155 billion into bond funds. In comparison to these numbers, the total amount invested into gold is negligible.

So why are so many people ignoring the asset as part of their portfolio?

I certainly don't think it's due to a lack of awareness of gold. The press coverage over the past few years has been phenomenal. Most people are now aware that gold can be bought as an investment, and that it performs well as a safe haven asset.

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