Safe ways to invest in gold

Here are safe ways to invest in gold:

*** Buying physical gold and storing it in safe deposit boxes.
*** Using third parties that buy and store gold for you like GoldMoney or BullionVault. These third parties should allow redemptions in gold.
*** Buying unhedged gold mining companies . I haven't done research on specific gold miners yet, so I can't recommend which ones to buy.


Riskier ways of investing in gold:

*** Buying ETFs like GLD is mostly safe, but they do have one risk: they allow short selling. If gold prices explode, investors who sold GLD short will receive margin calls and might not have the cash to cover, which means GLD has counterparty risks. ETFs like GLD should only be used for retirement accounts where other options aren't available.
*** Buying COMEX gold in order to take delivery. This is highly risky, but it might be the cheapest way to buy a large quantity of physical gold. Since not all December futures holders are going to request delivery, those that do stand a decent chance to get physical gold. However, do not buy COMEX gold unless you plan on taking delivery!

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