Options For Gold Traders

Gold prices are down from their record highs due to the exchange of artillery fire between North Korea and South Korea. Gold is trading at around $1,370 an ounce, down from their all time high of about $1,424 in early November 2010. According to some experts, gold traders could be buying gold coins below this level. Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, said, "I would say sentiment is still bullish. The conflict between North and South Korea is not going be solved within a short period of time." "It will take a bit of time. There may be more buying at below $1,370," Leung added. A gold trader has many options to choose from when investing in gold.

Stocks of Gold-Mining

People who invest in gold stocks do not get gold in physical form, rather they receive the stocks of a gold company. It is not common that the prices of gold stocks exceed the price of the metal itself. However, gold mining stocks are recommended only for people who not oly have confidence in the gold stocks but also in the stock market in general.

Collectible Gold Coins

Collectible gold coins have always been in demand. The selling price of collectible coins does not depend upon their weight primarily. Price is mainly based on rarity, condition and grading. According to the American Gold Exchange, “In most cases, collectors should look for coins in the highest grades they can afford. However, many of the sharpest collectors and investors will seek out the key rare dates of a series, which can be expensive in Mint State, in one of the lower grades — provided that they can find a coin with exceptionally high quality for the grade and excellent eye appeal.”

Bullion Coins

The price of bullion coins is based on the weight of gold, along with the additional premium for being mined, minted and marketed. These are available in various weights of 1/20, 1/10, 1/4, 1/2 and 1 ounce. Different countries make bullion coins, but the designs vary from country to country and from year to year.

Gold Funds

Gold traders who like to create a diversified portfolio for their investment in gold can consider mutual funds as an option.

Gold ETFs

An Exchange Traded Fund (ETF) basically means that the fund is traded on major stock exchanges. Gold ETFs are used for various reasons, from hedging downside risk to increasing exposure to gold and diversifying one’s portfolio. Investing in gold ETFs does away with the problems associated with buying the physical metal, such as storage, insurance, reselling, etc. But it can be up to three times more expensive and is less stable than owning the physical metal itself.

We maintain that he who controls the asset has the power. Therefore everything we deal in is the physical metal itself. While we educate on many forms of gold we still feel it is important to take possesion of your gold.