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4 Alternative Gold Investments

By    |   Monday, 15 June 2015 03:09 PM

Thanks to alternative gold investments, investing in gold doesn't have to mean owning and finding safe storage for actual bullion or gold coins. Here are some investment alternatives that let you buy into gold without the physical commitment.

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1. Stocks
You can invest in publicly traded companies that locate gold, mine it and process it. The performance of these stocks is tied to the performance of the individual companies, not only gold prices, according to Investopedia. Companies such as Barrick (ABX), Newmont (NEM) and AngloGold Ashanti (AGG) are among the dozens worldwide that trade on various stock exchanges in the United States and abroad.

2. Exchange Traded Funds (ETFs)
These tradable investment instruments come in varying combinations: company stocks, commodities and futures. Some of the best known are Market Vectors Gold Miners ETF (GDX), Vanguard Precious Metals and Mining Fund (VGPMX) and COMEX Gold Trust (IAU).

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3. Futures
Like stocks and other commodities, gold can be bought and sold under a futures contract, meaning the buyer and seller agree today to a price and an amount to be exchanged at a later date. Because these deals are essentially bets on the direction of gold's daily price on the open market, "strong nerves and sound judgement" are required, Bullion Vault notes.

4. Others
Investopedia's list of alternatives to owning physical gold includes some that could be considered alternatives to the alternatives. Among the more exotic-sounding gold-backed instruments, you'll find: exchange traded notes (ETNs), a hybrid investment combining attributes of the aforementioned ETF in a bond-like security that can be held until a maturity date; contracts for difference (CFDs), which are illegal in the United States but widely traded abroad; and even digital gold currency, also known as e-gold.

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Thanks to alternative gold investments, investing in gold doesn't have to mean owning and finding safe storage for actual bullion or gold coins. Here are some investment alternatives that let you buy into gold without the physical commitment.
gold, alternative, investments
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2015-09-15
Monday, 15 June 2015 03:09 PM
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