If you are planning to invest in Gold. There are two options for you

- Purchase Gold

 - Stake in an investment which will move in line with the price of gold.

Gold Bar & Gold Coin - If you wish to own gold , the cheapest way to buy is in the form of a gold bar or in the gold coin form. Gold bars  may be the most cost effective way and cheaper than Gold Coins.

But selling gold bars might be difficult as only  a specialist gold delare will give you a good price for a bar when you try to sell it. Another drawback is that you cannot sell a gold bar in part. Either sell completely or not.

Krugerrand  - You may even buy  Krugerrand which is a South African gold coin . They are the best known one-ounce gold-bullion coin.

They are often available at lower prices than any other gold coin and can be purchased in large quantities.

To maintian the stock also they are an easier option since one coin exactly contains one ounce of fine gold.

Sovereigns - You may stock sovereigns which are smaller, attractive and even more historic.
Storing Gold is always a nightmare. You need a safe if you plan to keep it at home and also will have to pay more

for your contents insurance.

To get over the gold storage nightmares, it will be a good idea to look at investment in gold mining companies or

 invest mutual funds which in a basket of mining firms shares.

The theory is that if the gold price increase, the share values of gold mining companies also will increase

proportionally. Hence investing in Gold mining company shares is as good as investing in Gold.
But if you consider historic data, mining company shares can be risky. The best option would be to invest in

mutual funds which will invest in various gold mining companies and thus diversifying the risk. They can bought

and sold of individually.

Overall the ups and downs of investing in Gold can be summarised as below.

Ups

• Demand for Gold has exceede the proportion -Hence prices have risen
• Investment in gold is considered better in changing economic conditions.
• Rising Oil prices and wekening dollar value leads to strong demand for gold.

Downs

• Except thae last three years price of gold came down fromt he peak in 1980
• Central Banks across various countries have tons of gold - Equivalent amount of gold is pledged when currencies are printed.  If they plan to sell gold , the price of gold might come down.
• Except last 3 years mutual funds investing in gold mining firms were losers.

Last but not the least, get individual financial advise before you start your investment in Gold.

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