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If you have been trying to find the right investment for you and your family, you should look no farther than gold. It has become one of the most respected and popular forms of investment all over the world. Gold has been around for years, and hasn’t shown any signs of changing. That alone is enough reason to invest in gold.

The Right Way To Invest

There are two popular options for investing in gold, one being investing in a gold ETF which is a good investment if you are willing to trust the DOW. However, keep in mind when you invest in this route you don’t actually own the gold, rather you own a share. Even if the share is backed by gold, you still only own a share.

There is another popular route of investing in gold in the area of hard assets. You see if you invest in hard assets such as gold coins or gold bars, you would actually own the gold. Instead of simply owning a share, you could own the gold, and you would have full control of the gold. Meaning you can do whatever you want with it.

How To Shop For Gold

Now, when it comes to actually shopping for gold, there are many differing opinions on this subject. I would recommend checking your local flea markets, pawn shops, and other stores of that nature. You can also check at local jewelry stores that may deal with gold coins and gold bars as well. So check into that option when you can.

However, one of the best options that is both convenient and cost effective, would be to shop on-line. There are many websites available that deal in gold, especially coins and bars. Because of this, you can find awesome prices, then have it shipped straight to your front door. It doesn’t get much better than that.

Last Thoughts On Gold

So, here you are with two options to choose from when it comes to gold. Do yourself a favor and buy gold before the day is over, it’s a decision that you will never regret making.

With gold prices skyrocketing, many gold bugs are eyeing leveraged gold ETFs. A double long gold ETF is an exchange traded fund (ETF) that uses different strategies to exaggerate the change in the price of gold. Normally when one buys gold, say for example $1000 an oz, own it until its $1200, and finally they sell it for a $200 profit. That’s basic investing and they earned 20% on their money. These gold funds will use leverage to magnify the return:

Leverage Option 1: Margin

The  fund may buy gold on a margin to increase the returns, similar to taking out a loan to buy a house. Say the fund buys gold for $1000, using $1000 cash and $4000 borrowed money for $5000 worth of bullion. Gold than rises to $1200 and they sell all they have for $6000. They just earned $1000, except they only invested $1000 of their own cash for a 100% return instead of 20% return in the cash value. A leveraged gold ETF will use this tactic to “double” the return on gold or double the loss.

Leverage Option 2: Contracts

There are various contracts in futures, options, or other derivatives that can inflate the return on gold, or lose it all. The most basic version of how this works is the fund will buy the right to buy gold at a price of $1100 when gold is at $1000 sometime in the next 6 months. Say this cost is $50 for the contract. When gold hits $1200 you could sell the contract for $100 dollars at the end of 6 months doubling your money, or again earning 5X the price of the gold movement.

The double gold ETF combines these strategies plus many more so the price of their fund will move twice the movement in gold in either direction. For the very aggressive investor, you can also find triple movements or plain leveraged funds. No matter which leveraged ETF fund you choose, by sure the manage your risk with sell stops and be sure to diversify your investment portfolio with other sector funds.