Understanding Gold Investments

Understanding Gold Investments

In this update on "Understanding Gold Investments", readers get into gist of understanding gold investments. Because gold investments come in different forms, understanding gold investments is the first step to successful gold investing.

How does understanding gold investments help you to achieve a profitable return on your investment? What are the pitfalls to learn from understanding gold investments strategies? How do you maximize your return on investment by understand gold investments? Read more to find out now.


Published June 13, 2011
Source: Business Times
by Mindy Tan

Understanding the shiny allure of gold

I DARE say, you might never look at your grandmother's gold necklaces, rings, and accessories in the same way again. While (yellow) gold seems to have lost some of its lustre within fashion circles, gold as a commodity still retains its charms in the world of investments.

When this love affair began 5,000 years ago, gold was primarily used for adornment and worship. It wasn't till much later that gold was made into coins. While this enhanced its usability as a monetary unit, it was not a perfect solution since these coins were often collected for the sole purpose of accumulating enough gold to melt them down into bullion.

Believe it or not, bullion is still one of the ways you can gain exposure to gold. Other ways include investments via an exchange- traded fund (ETF), index, or trading of futures and options in the commodities market.

Given the fair amount of emphasis placed on futures and options previously, let's take a closer look at the other investment vehicles available for gold.

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Editor
Investments Singapore