Paper Gold

Consider gold pools. Some mining companies, national mints and bullion dealers sell shares of a gold pool that offers paper ownership of physical gold. These shares can later be resold to realize a profit but generally are not redeemable for physical metal. This system of gold investment was popular before the proliferation of gold ETFs.

Use ETFs and ETNs. Exchange traded funds and exchange traded notes move like stocks and are incredibly easy to buy and sell. In the case of gold, they are backed by a physical store of metal and generally track the gold price. ETFs and ETNs are not redeemable for physical metal but are used by speculators to gain quick exposure to the gold market. Several gold funds trade regularly as does at least one gold inverse ETN. See Resources below for more.

Speculate on futures. While major industrial users may obtain their supply from the futures market, most participants in futures are merely speculators and never intend to accept delivery as stipulated in the contract. Because one contract covers 100 troy ounces of gold, playing with futures typically involves substantial leverage and therefore involves significant risk. Only the most experienced and traders should use futures for gold investment.