Ways to Invest
Buying jewelry — The high cost of jewelry
Any piece of jewelry will already have the cost of jeweler’s labour included in its price, as well as other costs involved in selling jewelry, such as shipping, rent, wages, advertising, taxes, etc.
Buying gold coins — Risk of loss
There is the ever-present problem of secure storage, coupled with the reality that, should you ever want to sell the coins, you would need to ensure they are appropriately certified as genuine, which, of course, involves additional costs.
Buying securities — Lack of any real goods
Gold futures, as all securities, have zero liquidity outside the markets where trade takes place. One should bear in mind that a private investor is not actually trading gold directly and futures are not actual purchases of gold, but rather future promises to deliver gold. “Paper gold” is only tradeable within a specialized market, when the market is open or operating, and when there is a buyer. Moreover, even if you have a buyer, delivery of real gold bought through futures will incur additional expenses for secure shipping and storage in professional vaults.
Buying gold bars — High barriers to entrance and high costs of storage
You need to possess significant financial reserves in order to buy gold bars at minimum of 1kg, at market prices. Furthermore, one has to make arrangements for secure storage of gold bars, and cover costs involved in certification of authenticity, insurance etc.