As more traditional investing markets continue to decline investors are exploring other investments. Investing in gold has become very popular again. Gold has historically offered investors stability against more volatile markets.

Investors generally choose three options when investing in gold. Investors can choose to own the gold coins or bullion, taking physical possession of the bullion itself. For most being able to hold you investment in your hands provides security especially in volatile markets. Make sure you understand the custodial nature of owning gold coins. You will need a place to store your gold. Many online gold dealers provide private vaults for keeping your gold or you can choose to keep gold coins and bullion on a bank safe deposit vault. Beware of companies offering to issue a certificate base don gold price, in lieu of the physical product.

Investors can also choose investing in gold stocks. Many investors choose stocks over gold coins or bullion because of the leverage they can gain. However be advised, most gold equities carry a premium price, because of the potential for a rise in gold price. If that sounds familiar, think about growth stocks, it is very similar.

The third instruments investors choose when investing in gold are exchange-traded fund or ETF. Generally ETF’s are considered safer than gold mining stocks. Stocks are significantly leveraged against the price of gold and often can fall well below the price of gold itself. ETFs are essentially index funds, which is to say they track the performance of a specific stock or bond market index or other benchmark, in this case gold prices.

Whichever method you choose for investing in gold, be sure you understand fully how each vehicle functions. Investing in gold should be considered a buy and hold transaction, in other words, a log term investment. Investing on gold should be a portion of your investment portfolio and not the primary focus. Depending on the market, a position in gold from 1 percent to 5 percent is considered wise.

In economic times like the present, gold dealers are plentiful. Unfortunately, many are unscrupulous, and do what they can to relive you of your folding money. Use caution when making your choices.