It's not a secret that gold has been on a tear for the past decade. The price of the yellow bullion has risen 400% since 2001. Now, with the direction of the U.S. economy unsure, investors are increasingly adding gold to their portfolios.

But how do you go about investing in gold and other precious metals?

One possibility is through futures contracts offered by the New York Stock Exchange Liffe U.S., the futures exchange of the NYSE Euronext. Here you can buy not just the 100-ounce size, which is standard, but also "mini" futures contracts in 33.2-ounce sizes.

Jennifer Ropiak, a vice president with NYSE Liffe U.S., talks with DailyFinance in the video below about how the process works. Since the futures exchange opened in 2008, Ropiak says there has been much greater interest in trading and hedging in gold. She also says that demand for other precious metals, silver in particular, is also rising. Watch the video for more details.


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Curtis Horn

It is a pity that I've just read this post ... It would be helpful ..
Guys, you should read this article about Mistakes To Avoid of Buying Gold Futures:
http://www.goldbullionpro.com/buying-gold-futures-top-5-mistakes-to-avoid/

November 26 2012 at 11:14 AM Report abuse rate up rate down Reply
Avant Garde

For short term speculative bets, you can try investing in precious metals by buying for example gold futures or options contracts.

These investments can give you a chance to control a large position in gold for a relatively small investment.

http://www.bullioninvestorhelp.com/futures-and-options/

June 02 2011 at 12:30 PM Report abuse rate up rate down Reply
prognesub

If youi're going to do the ETF route make sure you actually own the gold
you get a certificate for. The best way to own gold is tale actual physical
delivery of the gold you buy.

August 12 2010 at 3:00 AM Report abuse rate up rate down Reply
rgkarasiewicz

waterboy1793: It appears to me that U.S. Series I Savings Bonds or TIPS may be the best option. If the currency falters, then all bets are off.

August 11 2010 at 1:36 PM Report abuse rate up rate down Reply
rgkarasiewicz

waterboy1793: I wish you were right but the federal government has very long tentacles and very good ears. I can assure you that they will have no difficulty as to finding out who is holding what. Moreover, I expect the federal government to start confiscating the metals in the very near future.

August 11 2010 at 1:33 PM Report abuse rate up rate down Reply
rgkarasiewicz

Investing in futures is only for professional traders; do not attempt to try it yourself. As per purchasing gold and silver bullion or coins, the U.S. government does have the authority either to confiscate or to tax the private holdings of the precious metals. President Roosevelt did exactly that in the 1930's.

August 11 2010 at 1:25 PM Report abuse rate up rate down Reply
rgkarasiewicz

Strike that comment about "there certainly is no shortage of ......."

August 11 2010 at 12:59 PM Report abuse rate up rate down Reply
rgkarasiewicz

Mr. Huthseeing: The price of gold and silver are heavily manipulated by very powerful players.

August 11 2010 at 12:56 PM Report abuse rate up rate down Reply
rgkarasiewicz

Purchasing gold, silver or other commodities is a sucker's bet in any form of transaction. Moreover, there is unfortunately no shortage of peddlers preying on peoples' fears especially during the hard times.

August 11 2010 at 12:45 PM Report abuse rate up rate down Reply
tinder84

Hey buffalo......How about you doing the math. You went up a bit more than 200%

August 11 2010 at 12:22 PM Report abuse rate up rate down Reply