All that Glitters - Investing in Gold

Perhaps one of the most recognizable precious commodities in existence, gold has long been a treasured element in the eyes of the people. Gold is the treasure which sent explorers crossing the Atlantic centuries ago. In fact, until the mid 20th century, most countries used a fixed amount of gold to determine the value of their currency. The United States did not abandon this gold standard until 1933. While it may no longer be practical for entire nations to use gold as the barometer for their economies, many still put considerable investment into the glittering metal. After all, gold is widely considered to be one of the most reliable investments for long or short term.
For consumers, investing in gold is not a new trend. One of the earliest examples of such investment was in California, following the gold rush. Towns like San Francisco saw a huge increase in the demand for gold dust, scrap and nuggets to be converted into a more liquid form of cash. Investors quickly supplied this demand by setting up record numbers of banks which issued a uniform currency to the gold owners. The gold was then melted into bars which were transported across the country. This enabled a greater amount of people to become involved in the gold investing boom.
After the stock market crashed and most governments switched from a gold standard to an economy driven currency, some investors lost interest in gold. However, unlike many other precious metals, gold is extremely versatile. Even before it became ingrained as a form of insurance on currency, gold was valued for its beauty and durability. Still today, gold is most easily recognized through its use in fine jewelry and elaborate décor.
Gold's undeniable presence in the jewelry and luxury market has surely helped increase its value. However, none of this can fully explain just how valuable gold has become in the last quarter of a century. From the beginning of the 20th century until around 1980, the value of gold hovered at around $25.00 per ounce. From the early 80's up until present, gold's value has skyrocketed to over $1,000 per ounce. Few other investment options can show this type of track record. Put simply, gold has shown a marked increase in value of almost 4000%. It has more than doubled in the last three years alone.
One of the most popular ways of investing in gold is through buying and selling gold minted coins. In addition to older, antique coins, newer coins are still being minted today. Such examples are the Gold Eagle and the Gold Buffalo. The Gold Eagle coin was first minted in 1986 and is issued in 5, 10, 25 and 50 dollar mints. The Gold Buffalo is a more recent coin and was first minted in 2006. It is available in a $50.00 mint only.
In addition to investing in gold coins, investors can place their money directly in the ownership of gold bullion or bars. While there is a certain panache that comes with having gold bars tucked away in one's home, there are disadvantages. Since gold bullion is heavy, and extremely valuable per bar, they are both cumbersome and potentially unsafe to store at home. For these and other reasons, many companies offer indirect ownership of gold through the purchase of certificates and share ownerships. These allow the owner to prosper from the continued increase in the value of gold without storing it themselves.
Whichever way it is invested, gold continues to show that it is a dominant force on the market. The metal that has forever been tied throughout history as regal and majestic is no less so today. However, perhaps the most unique characteristic of the precious metal is its mystic and magical properties. Maybe it is for this reason that the value of gold continues to rise even as other markets fail. There is an undeniable mystical connection between us and that glittering gold.