How to Buy Physical Gold
Some investors seeking exposure to gold prefer to own physical gold bullion. This strategy ensures that the value of the assets held will move in unison with spot gold pricing, removing the nuances of futures contracts. Because gold has a high value-to-weight ratio, it is relatively cheap to store a material amount of gold bullion. However, the value of gold also means that investors must make arrangements for secure storage.
There are a number of companies that sell gold coins and gold bullion. Investors should understand that there may be a premium to purchase gold coins, and should determine if any bullion purchased meets quality standards.
Investors also have the option to gain exposure to physical gold through exchange-traded funds whose underlying assets consist of bullion stored in secure vaults. Many gold ETFs are physically-backed, including GLD (stored in London), SGOL (stored in Switzerland), and AGOL (stored in Singapore).