Donald Trump, real estate mogul and TV personality has accepted gold bullion as a security deposit from APMEX for the Trump building location in Wall Street they will be occupying in New York City.

Some people may think this isn’t big news, Donald Trump does crazy things all the time. But what some may be overlooking is the fact that gold is being used as a currency here, that hasn’t been done in the US, at least not in large quantities, for years.

Could this be signaling things to come for the US dollar?

This is no more apparent than right now, as the world’s economy is currently in a downward spiral. Investors are clamoring to get their money into gold. Prices are at an all time high, recently surpassing the $1,800 an ounce mark, and continuing to rapidly spike. Many investors don’t put their money into gold to make a huge profit; they simply put it in the there because their money will remain safe during tough economic times. Making money back is just an added bonus.

How to Invest in Gold Bullion

The ways of investing in gold can be via purchasing physical gold bullion in the form of gold bars or gold rounds, minted gold coins. Gold shares in gold mining companies are also available and various types of gold funds or mutual’s that are managed by professional investors.

Holding at least a small percentage of your stock portfolio in gold bullion is always a good idea. The relatively stable price of gold can help insure your investment portfolio against economic instability. Gold bullion prices may fluctuate over the years but gold investments are highly unlikely to get devalued and have performed well over recent years.

Gold coins have a legal tender face value in the countries currency that they were minted, and can be easier to dispose of if you need to liquidate your gold assets. Many types of gold bullion rounds or gold coins are available, such as American Eagles, Krugerrands, Sovereigns, Canadian Maples, Australian Gold Nuggets, Chinese Gold Pandas and many more.

Gold bullion bars are available in many different sizes up to the 400 ounce size. The 400 oz bullion gold bar is the London Good Delivery bar size. Good delivery bars must meet certain specifications, they must weigh between 350oz – 430oz and be of a minimum purity of 99.5% pure Gold. These London Good Delivery bullion bars are normally held by central banks and not usually held by smaller private investors.

Mining shares can be lucrative but their performance depends on the success of the mine and the general standing of the mining company you are investing in. Therefore mining stocks may not follow the general trend of the gold fix market, but can outperform the market if the mining company is particularly successful.

A precious metals gold managed fund can provide a more diverse gold stocks portfolio. The funds manger may invest in various precious metals and gold shares spreading any risk between a selection of stocks. Precious metals mutual’s are available that also invest in other metals such as Silver, Platinum and Palladium as well as gold stocks. Gold and Silver ETFs are also very popular.

So what is the common investor to do?

If you ask us, we would say buy gold. Why? Inflation is here, demand is up, and gold has dropped way off it’s high from a few months ago. Being able to invest in these times might be a great idea to even the most timid investors. And you don’t have to go spending thousands on gold bullion. You can buy just an ETF and get in on the action like that.

As we’ve suggested in the past you can buy a gold ETF like IAU from iShares, a great ETF company that provides all sorts of sector ETFs like precious metals and other commodities.

Once again, the price of $870 or so per ounce seems like a great price to buy at.

Picture this. You have gold bullions worth millions. Wouldn’t you be worried about the safety of your hard-earned fortune? You may spend sleepless nights over the security of your gold. In case you need money, selling them will not be very easy given that you will need to transact in bullions and not in a smaller unit. Wouldn’t it be easier dealing with some papers than enormous bars of the precious metal?

More and more people are being inclined towards investing in gold mining stocks than gold bullions. This article will discuss why you should buy gold mining stocks than gold bullions.

It is important that you consider certain factors before investing. You need thorough knowledge and understanding of mining to invest in gold mining stocks. Mining risks account for more volatility in the prices of stocks as compared to that of its physical counterpart, the gold bullion.

Easy trading: Wise investors usually hold a balanced portfolio of gold mining stocks and gold bullions, thus taking a calculated approach to gold investment. However, when it comes to the ease of gold trading, the stocks hold a much stronger place as against gold bullions. Gold mining stocks enable easy buying and selling in the market.

Reduced costs: Holding gold bullions will require you to spend a considerable sum in insuring the precious metal. Having gold stocks, on the other hand, does away with this high cost factor.

Fewer complications: Investing in gold mining stocks makes life simpler for you in the sense that you do not need to worry about the quality of gold involved. You will no longer have to test the purity of gold you own because your gold will now be in stocks not in bullions.

No storage issues: With gold bullions, you always have to worry about safe and secure storage for your gold. You also need to spend a large amount of money for the safety and storage of your gold. Investing in gold mining stocks does away with your storage concerns.

Easier transactions: While holding gold bullions makes it difficult to transact in any denomination, you can transact in the smallest unit of gold with gold mining stocks.

Easier resale: The resale price of gold bullions is usually less. Gold mining stocks do not suffer from this limitation.

Experts believe that an investment in gold mining stocks will reap higher returns than an equivalent investment in tangible gold. Though risky, gold mining stocks are considered to be worth investing in. It has been observed that the profits of mining companies are increasing at a more rapid pace than the prices of the products they are mining.