subject: 5 Tips On How To Trade Gold Shares [print this page] Commodities are the category that gold, silver, or even oil are listed under. Investing in gold commodities is a bit more difficult for investors than paper investing such as stocks and bonds. But the returns are so much more lucrative.
*If you want to invest in gold, there are three basic methods. One method is to purchase physical gold bullion or coins.
Another method is to purchase an EFT that represents your share of gold, or you can explore the commodities and futures market and trade in that venue. Whatever method you choose, gold is a wonderful investment tool and generally does not lose value.
Gold has always been valued and is often typified as the form of wealth most desired. If you have gold, you are assured of keeping some investment wealth.
*Stocks and bonds are transferable via ledgers and electronic media. The traditional investor recognizes these items and traditionally stocks and bonds tend to be more accessible. Your computer or broker can always help you track and trade stocks and bonds. Commodities such as gold bullion or coins are somewhat more complicated to trade through the futures and options markets. You have to know the best places to purchase gold and it is not as easy to just walk into an investment house and purchase physical gold.
*Stocks and bonds are more portable than gold, but the average investor is still able to easily purchase gold bullion and coins from a dealer. If you go to the right bank, you can also purchase gold at that bank. When purchasing gold bullion from a dealer you do not actually have to have the metal physically. Think of the difficulty of carrying $1,000,000 in gold through the streets! It would almost be impossible.
*Generally when purchasing gold for investing purposes consumers use exchange traded funds (ETF) that are just like buying and selling physical gold. When you buy gold shares a ticker symbol (GLD) will be stamped on your receipt or EFT certificate and you can trade that ETF on the New York Stock Exchange if you desire.
*Each share of the ETF symbolizes a portion of gold. Generally this is one-tenth of an ounce. If you want to trade or sell your ETF or gold investment you use the ETF as a share point. If your gold share is selling at $600, your gold ETF will trade at $60 per share. This investment paper is the best way to buy and sell your gold. Whatever method you choose, enjoy working with a commodity that will not lose value.
