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  • Hello, my name is Mark Griffith, and this is going to be a very short introduction into

  • how to buy gold. Essentially there are three ways in which you can invest in gold. The

  • simplest, the most obvious is buying physical gold, and that would be buying for example,

  • gold jewelry, buying crew grams, buying ingots of gold, bars of gold. The second way that

  • you should think about this is buying some kind of contract, its price is fixed to the

  • price of gold. And both Chicago and New York there are contracts available where you can

  • effectively buy something that means you have ownership of that gold, or you have ownership

  • of a contract who's price tracks the price of gold, but you don't have to take ownership

  • of it physically. That's the problem with the first type, is you have to decide where

  • to store the gold bars, lets say you've bought yourself five gold bars, you have to put them

  • somewhere. In fact, you probably will be leaving them at a bank in a deposit accounting cage,

  • or in a safe somewhere, and you might have to pay for that. So there's physical ownership

  • of gold, then there's ownership of a paper contract, which is designed so the price tracks

  • the price of gold. And the third popular way to do it, is to buy shares in gold mining

  • companies, and there's a variety of mining companies of course. There's some which only

  • mine gold, there's some which mine a whole range of minerals. And you have a serious

  • of problems there. One of the problems is that like all shares it's more complicated

  • than simply the price of gold, that's to say, the company might have excellent gold reserves,

  • but it might be badly managed, or the company might be very well managed, and actually have

  • not such good gold reserves. So the closer you move towards buying shares in mining companies,

  • the more complicated things will get. On the other hand, it's very simply easy to buy and

  • sell shares and on occasion you might find it difficult, for example if you have physical

  • possession of gold, it can be quite difficult to sell the gold. So you want to bare in mind,

  • do you want to have the gold physically, do you want a contract that tracks the price

  • of gold precisely, or are you happy to simply add some mining companies, some gold mining

  • companies to your share portfolio. Think about those three, and then you should be in a position

  • to get yourself into the gold market. One other thing to consider, is that lots and

  • lots of gold is held in bullion form by central banks, and is used by central banks as an

  • instrument for covering losses, for moving their own currency around, for defending their

  • own currency. So if the currency is weakening, you might find that they are selling off gold

  • in order to pay for day to day operations to defend their currency. What that means

  • is gold is a good investment, but it's not as straight forward as it looks, it's widely

  • used as a bullion reserve by large banks, and therefore the price can move in unexpected

  • directions, so be careful. Good luck.

Hello, my name is Mark Griffith, and this is going to be a very short introduction into

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A2 gold price mining ownership buying currency

Investment Advice : How to Buy Gold

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    Chak Yuen Lai posted on 2016/12/07
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