Gold is a great investment that adds strength and stability to a portfolio. There are several factors and preferences that determine the best way to invest in gold. The best options for investing in gold include buying physical gold, gold exchange-traded funds (ETFs), and gold certificates.

There are many reasons to invest gold. Gold is not at the mercy of a weakening currency, is more resistant to inflation, and not at risk for collapse because of a failed government monetary system. The value of the dollar has lost around 99% of it’s value over the past 100 years or so and gold is an investment that has been historically increasing in value. Gold can not be reprinted, created, or manipulated or mismanaged by government. This makes it a more consistent and stable form to keep value than a safe full of cash or money sitting in a bank account. Now that the reason to invest in gold is established, the best way to invest in gold is the next step.

Buying physical gold is the oldest and most common method of owning or investing in gold. Typical investors buy gold bullion, coins, and bars to invest in this precious metal. One could store small amounts in a jewelry box or large amounts in a secure home safe. You can even store your gold in a safe deposit box at a secure location. The current value of gold makes it possible to store approximately $50,000 with just a couple of pounds. This value per weight ratio prevents buying physical gold from invading space like some other valuable collections or investments. Jewelry is another form of physical gold investment that serves a dual fashion purpose.

Gold ETFs are forms of mutual funds that are brought and purchased on the stock market. This allows investors to invest in gold without actually possessing it physically. These gold exchange-traded funds began in 2003 and have became popular since. There are additional charges with this process such as trading, insurance, and storage fees. The value and performance of the ETF is pre-established so investors aren’t exposed to much risk. The value of these funds can decline with time as the fees are typically pulled from the face value periodically. There are a couple of ETFs that trade in the U.S under symbols such as GLD and IAU. These shares can be sold or redeemed by investors by selling them to other investors or back to the ETF.

Gold certificates may be issued by banks and are paper notes that may or not be allocated for specific amounts of gold. An unallocated certificate is based on banking performance and is conditional. An allocated certificate is in exchange for specific gold bars. This option also does not require or allow for the actual possession of the gold.

The best way to invest in gold depends on individual circumstances. If one is in a stable environment and plans on investing in gold for the long haul, buying physical gold may be the best option. This method doesn’t have the fees and potential risks of the other methods and it is quick and easy to liquidate. If someone is particularly uneasy about buying or storing gold and plans to sell and trade often, then a gold ETF may be the best way to invest for them.