Gold investment can take many forms, which investors may choose to combine for flexibility.  The distinction between investment in physical gold and gaining exposure to movements in the gold price is not always clear, especially since it is possible to invest in bullion without actually needing to take delivery. 

The suitability of a particular form of investment depends on a number of parameters:

• the size of the investment as this may rule out certain forms
• the frequency with which the investor expects to trade
• operational considerations that take ease of process into consideration
• other investments, or where the gold allocation is likely to reside
• the investment motive: exposure to gold as a real asset or simply exposure to price fluctuations, which may or may not be geared

Coins and small bars are typically the domain of smaller investors and is a market that saw net inflows of nearly $10 billion in 2007.  This form of investment is dominated by India, Vietnam and Turkey.  Institutional investors also transact in gold bars, but these are the much larger Comex good delivery bars (100 troy ounces) and London good delivery bars (400 troy ounces).

The Gold Bars Worldwide website offers a range of useful information regarding the international gold bar market.

Gold futures and options are traded on a number of exchanges around the world.  The Commodity Futures Trading Commission provides extensive reports on derivatives trading in the United States.  Tradable commodity indices are based on fully collateralised baskets of long-only commodity futures, all of which include a small allocation to gold.

Gold is also traded in the form of securities listed on stock exchanges. These equity type products, referred to generically as exchange traded gold, are a relatively new innovation but represent more than US$ 10 billion in assets globally at the time of writing.

• Gold accounts
• Gold certificates
• Gold orientated funds
• Structured products