What is the most economical way to buy gold?

Gold bars are usually the most cost-effective way to buy physical gold. They are sold all over the world in major centers such as London and Hong Kong. Bars are classified as ingots as long as they have 99 or 5% pure gold or more. Another simple principle is that buying in bulk is practically always cheaper.

Most dealers offer a lower premium per ounce (or whatever unit of weight you measure) when you buy a certain amount of ingots at a time. According to our precious metals expert, St. The one-ounce Gaudens Gold Eagle is one of the cheapest gold coins you can buy for its value right now. Instead of investing in a single gold-linked company, one invests in a basket of gold-related securities through gold mutual funds or ETFs.

Gold funds can track the price of gold, include the shares of several gold mines and refineries, or offer exposure to gold futures and options. For investors willing to take on more risks, futures and options may be attractive. If none of those words already mean anything to you, you should probably avoid these gold investments for now, as they are highly speculative.