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One of the most precious metals meant for investment today is gold. Gold has a long history of being used as a scale for measuring wealth and as a barter item since ages. It is not just a commodity; it is actually a non-official currency used around the globe. Gold is used to support the respective currencies by the central banks of each country.

There are two main reasons for using gold as an investment. Gold is bought by the investors to gain profit from its continuous rising prices, and to use as a deception in times of financial downturns or crisis.

There are various methods of investing in gold. The most straightforward way is to buy it in the shape of gold bars, coins or bullions. They are a great way of preserving wealth and passing it on from one generation to another. Gold in this form can either be bought over the counter or through a gold dealer. This can be termed as the least risky of all gold investment strategies.

Investing in gold exchange traded funds is another way of investing in gold. One can trade these funds in the form of shares on the stock exchanges of the entire world. ETFs allow you to trade gold without physically storing it. Similarly, gold certificates can be bought and dealt in without storing physical gold. Yet another way of gold investment is through buying shares of gold mining companies or gold stocks. But it is crucial to make sure that the company you are dealing with has sound financial standing. Only then you can benefit from the soaring prices of gold. You as well as the gold mining company will make huge profits this way.

Gold accounts services are offered by a few banks in the world. Such account holders trade in gold, just like they would trade in any other foreign currency. They get the account ownership plus the gold.

Besides the above mentioned strategies, gold derivatives are also a popular investment. These include gold futures and gold futures options, which can be used for hedging or speculating. It is important to keep in mind, however, that dealing in gold derivatives is a risky strategy that requires skills and experience. First time investors, or risk adverse investors should be investing in physical gold rather than dealing in derivatives.

It is imperative for investors to have a diverse portfolio in order to reduce the risk factor. Gold is considered to be a healthy alternative in creating the portfolio of a person. Gold investment is solid, and gold prices remain stable even in times of economic crisis. Dollar has lost its place as a strong investment and investors are looking for other beneficial options like investing in commodities. They would rather invest in precious metals like gold. This is the reason why gold should be an integral part of a healthy portfolio every investor.

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Jack Wagon is a gold investment consultant. You can take his help to buy gold bullion. For more information about buying gold you can visit his recommended site at http://www.goldmadesimple.com/

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