How to Invest in Gold
Hard assets are plummeting. One choice of stability is gold investments. Look at it this way, there is only a limited amount of gold in the world and most of it is held in huge vaults in world capitals. With gold hitting highs, it is risky to invest now, and the return is lower than if you had started earlier.
Gold is trading now between $1700-$1800 per ounce. With a strong US dollar, gold is actually a little cheaper compared to other currencies, so you can buy more with the dollar than before.
There are 3 ways to invest: gold currency, gold mining stocks, or gold exchange traded funds (ETFs).
When buying currency get a book to find the market price. Only buy from reputable dealers. In some states, dealers are required to have a special license that guarantees you that you are given a fair price. Check your local business bureau or state consumer protection agency.
Don't buy those fake coins and stamps they advertise on tv. They have little value unless you just like them.
Gold ETFs hold gold or gold stocks. The main funds are the GLD, GDX, UGL, DGL. There are fees associated with owning these funds, you have to check with your brokerage or the fund.
Yamana Gold (ticker: AUY) and Barrick Gold (ABX) are the largest gold miners. HNY, DROOY, GFI, GOLD are other gold miner stocks. Some of these pay a very small dividend (less than 1%) so if the stock goes down, you lose your capital, but you get paid over time a small amount of money to own the stock.
The current high price of gold is not based on jewelry demand or commercial demand, it is based on fears of currency/inflation/bank failures, and coin demand - so the current prices may or may not be real.