Metal storage programmes: Investors can keep their gold, silver or platinum safe by using storage facilities such as those at the exchange-approved Delaware Depository Service Company in the US and the AAA-rated Perth Mint.
Gold Investments' broker fees for the latter are a 3.5 per cent entry charge and 1.5 per cent exit charge, although people investing €500,000 or more should be able to negotiate lower charges.
Investors can save on storage fees by opting for unallocated bullion. No stamp duty applies if the purity is above 99.5 per cent, although capital gains tax (CGT) is payable.
There is usually no set investment periods, although an outlook of 10 years is recommended. As silver tends to rise faster and fall faster in value than gold, it is more suitable for speculators who want to invest over shorter terms.
Bars and coins
According to Gold Investments, classic pre-1933 gold coins are an intelligent alternative to modern bullion thanks to their increasing scarcity and historical significance. The British sovereign (one-pound coin) is the most widely traded of the older coins.
Modern bullion coins allow investors to buy almost pure gold, silver and platinum legal tender coins at a small premium to the spot price of gold as quoted on the markets. The most popular bullion coins for investors are one-ounce coins. The rest are bought mostly by collectors.
The 22-carat South African krugerrand is the most widely owned gold bullion coin and was the first to be produced in the exact one-ounce size. Investors pay a mark-up on the spot gold price to cover manufacturing and distribution costs.
Bullion bars should be stamped with their exact weight and often a serial number. The larger bars are generally better value for money than smaller bars because of the manufacturing mark-ups.
Investment bonds
BDO Simpson Xavier's Golden Dragon Bond, which offers exposure to gold, aluminium and agricultural produce as well as Asian equities, is aimed at sophisticated investors with a minimum investment level of €100,000.
But other bonds promising limited exposure to gold have lower entry levels. Ulster Bank's recent multi-asset combination bond, where the return is partly linked to the performance of the world's gold, nickel, copper, lead and aluminium markets, has a minimum investment of €3,500.
IIB Bank's new protected portfolio bond, meanwhile, has a minimum investment requirement of €10,000. It places part of investors' money in the Dow Jones AIG Commodity Index, of which about 8 per cent is invested in precious metals.
Spread betting
Speculators can bet on the price of gold, silver and other commodities using financial spread betting. This involves gambling on the direction of the purchase price of the metal, staking an amount per point that the metal will move in price, either up or down. For example, if gold moves in the predicted direction, customers receive the amount of the price movement multiplied by their stake. But if it moves in the opposite direction, their losses are multiplied by the amount of the movement, so this can be a risky game.
Exploration stocks
Several Irish companies are involved in gold mining, or at least hold licences for areas thought to be rich in minerals. Shares in many of these companies are listed on the Alternative Investment Market (AIM) of the London Stock Exchange and most are viewed as high-risk stocks for adventurous investors.
