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Throughout history, gold has always been one of the most sought after metals in the world. Even in today's modern society, gold is still an extremely valuable asset. Although the economy has been quite volatile in recent years, gold has seen a fairly consistent increase in value. Because of its continued increase in value, buying gold can be a sound investment decision. However, before you run out and start purchasing all of the gold that you can get your hands on, you should take some time to learn more about the different types of gold that you can buy.

Gold Jewelry

There is absolutely nothing wrong with buying gold jewelry. However, it is important to understand that if you buy gold in the form of jewelry, it should be for personal enjoyment and not for an investment. Many people think that you can buy gold jewelry as a long-term investment, but this is simply not true.

Although a 14 karat piece of gold jewelry will look great around your neck or on your wrist, it is actually not as pure as the standard investment grade of gold. Additionally, because gold jewelry requires someone to design and make it, you are paying extra for the labor and skill that is involved in crafting the jewelry.

Gold exchange-traded funds (ETFs) are one of several options for actually investing in gold. While the name may sound complicated, an ETF is simply a type of investment vehicle that generally track a specific index. Although there are now a wide variety of ETFs available, gold ETFs were one of the first types of ETFs that were made available to investors.

The reason that ETFs are so popular among individuals who want to invest in gold is because they eliminate any potential hassles. Instead of finding, verifying, purchasing and storing actual amounts of gold, you can simply invest in an ETF that represents an investment in gold. Gold ETFs also have low fees, small commissions and favorable tax conditions, which are all additional reasons why a gold ETF may be the best way for you to buy gold.

Gold Bullion and Coins

If you are serious about investing in gold, but need the reassurance of physically owning the gold you invest in, your best bets for investment are gold bullion or coins. With either of these investment options, once you purchase them, you will actually be able to lock them away in a safe deposit box (or a vault in your home, or any other location where you feel they will be secure).

Whether you decide to invest in gold bullion, gold coins or both, the most important thing you need to remember is that you should always research a gold dealer before making a purchase. Although there are plenty of legitimate gold dealers, there are just as many (if not more), people who want to do nothing more than scam you, so it's important to do the necessary research to find out the true intentions of a gold dealer.

In addition to researching the reputation of the gold dealer, you will also want to research the type of gold you plan on purchasing. For example, gold bullion is valued according to the current price of gold, while gold coins are normally priced based on their value to collectors.