You may have seen many of the ads online or on billboards for companies that are trading in gold as well as in other precious metals. You may be wondering how you can get on this trading vehicle. It is actually much easier than you may have originally thought, especially if you are only trying to bolster a personal investment portfolio. There are many ways in which an individual can profit by trading in gold. A few of these methods will be briefly discussed below.

One – Buying Gold Derivatives

The recent fraudulent activities by some of the larger players in the financial world have given the word "derivative" a bad name; however, all that word means is that you are trading in an asset that is based on gold rather than going through the process of investing in the gold itself. This is a process that can be done very easily online; however, it can be more risky without providing the same rate of return because derivatives are subject to the whims of the short term speculators in the market.

Gold derivatives can include mutual funds that trade in gold or in other, larger precious metals markets. They can also include long term funds that contain gold such as individual retirement accounts. They can even include investments that trade like stocks as in the case of the ETF.

All of these are viable trading solutions for people who are looking to invest in gold; however, they are definitely not the most stable nor the most profitable in certain economic conditions. In order to most fully take advantage of the market for gold, the metal must be invested in as directly as possible.

Buying Gold Online

For people who are seriously looking into making gold one of the long term investments that holds up or hedges a personal investment portfolio, being able to buy gold bullion is the best way to invest. Gold bullion provides a direct way to buy gold online as well as the most stable price that can be depended upon when it comes to representing the actual value that the metal has at the time. Most investors who are looking to seriously trade in gold are more than happy to trade off the small possibility of speculative overreach on a price for the stability that bullion provides.

Many people shy away from direct investment in bullion because they believe it to be less liquid. Contrary to popular belief, bullion is not less liquid – it is simply a different market that most people do not participate in, especially those who are trying to invest in gold derivatives. Bullion tends to be a closed market that is more exclusive; however, this does not mean that there are less investors or that the metal bullion is harder to sell. As a matter of fact, because of the regulation that surrounds bullion, those investors actually have more protection because the buyer of last resort is the government itself.

When you look to buy gold online, you will want to find a good bullion investment firm that you can trust. Bullion firms will be the government licensed entity that will actually hold your bullion for you physically and protect it. You can trust them to give you the access that you need to your investment at any time and you can also count on them to protect it physically so that it trades at the best value possible when you get ready to make a move.

You will have to balance the features that you want in the protection of your bullion with the fees that the company charges. Regardless, you should do business with a company that keeps you up to date on the ever changing rules and regulations in the market for gold bullion so that you will know if you want to make a move with your investment. When you buy gold bullion, you also want to know that you have a company with the best execution so that you get the most amount of gold for your price. There are many ways to determine the best company for you; however, the best way is perhaps simply to call them after checking their reputation online to see who provides you with the best customer service.