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Paper Gold
Gold certificates: Gold investors instead of storing the actual gold bullion can hold a certificate of ownership. Gold certificates allow investors to buy and sell the security without the hassles associated with the transfer of actual physical gold. As a certificate, it is just a piece of paper, and thus a claim on another person's gold. Some argue that it is not the same as owning the real thing, especially in a war, crisis, or credit collapse.
Gold accounts: Most Swiss banks offer gold accounts where gold can be instantly bought or sold just like any foreign currency. Unlike physical gold, the customer does not own the actual metal, but rather has a claim against the bank for a certain quantity of metal. Digital gold currency accounts, such as e-gold or e-Bullion, work on a similar principle. Gold accounts are backed through unallocated or allocated gold storage.
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