This Time, You Don’t Have to Head West for the Gold Rush!

4 10 2010

While many aspects of the economy have suffered, Gold has performed exceedingly well. As of Friday’s close, the price for an ounce of gold was $1,317.80; an all-time high.

(Image from http://www.goldprice.org/)

For those who have been apprehensive to invest in gold bars and coins due to the practical issues such as security and storage, in an article from CNN, Want to catch gold fever? Try an ETF the author suggests just that, invest in an ETF.

Exchange-Traded Funds, also known as ETFs are investments that are tied to an index fund or a commodity of some sort and traded on an exchange.

Gold is usually a steady performer, but it seems the pattern that when all else is in shambles, gold thrives. The reason for this is that it is often seen as a safe investment during a crisis. It is projected to continue to rise anywhere between $1,500 and $2,000 an ounce in the next year.

As always, diversification is key, so if you are considering investing in this precious metal in the raw form, or through an ETF, it is best to follow the rule of thumb, “Don’t put all your eggs in one basket.” Be wise with your investments, do your research!

Where to get started? First, start by doing some research, here are some good places to start:

ETF’s physically-backed by gold:

SPDR Gold Trust (ETF) GLD

iShares Gold Trust(ETF) IAU

ETF that track gold mining companies:

Market Vectors Gold Miners (ETF) GDX

Stock in Gold Mining Company:

Newmont Mining Corporation NEM

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