Gold Mining Companies Business that specialize in mining and refining will likewise make money from a rising gold price. Purchasing these kinds of business can be a reliable way to make money from gold, and can likewise bring lower risk than other financial investment methods. The largest gold mining companies boast comprehensive worldwide operations; for that reason, service factors common to numerous other big business play into the success of such an investment.

One method they do this is by hedging against a fall in gold prices as a regular part of their company. Even so, gold mining companies may supply a much safer way to invest in gold than through direct ownership of bullion.

Gold Precious jewelry About 49% of the international gold production is used to make fashion jewelry. With the worldwide population and wealth growing yearly, demand for gold utilized in jewelry production should increase over time. On the other hand, gold jewelry purchasers are revealed to be somewhat price-sensitive, buying less if the price increases promptly.

Much better precious jewelry deals might be discovered at estate sales and auctions. The advantage of purchasing precious jewelry this way is that there is no retail markup; the downside is the time spent looking for important pieces. However, fashion jewelry ownership provides the most enjoyable way to own gold, even if it is not the most profitable from an investment perspective.

As an investment, it is mediocreunless you are the jeweler. The Bottom Line Larger financiers wanting to have direct exposure to the price of gold may choose to invest in gold straight through bullion. There is also a level of convenience discovered in owning a physical possession instead of simply a paper.

For financiers who are a bit more aggressive, futures and options will definitely suffice. But, purchaser beware: These financial investments are derivatives of gold's cost, and can see sharp go up and down, especially when done on margin. On the other hand, futures are most likely the most efficient way to buy gold, except for the fact that agreements should be rolled over regularly as they end.