For hundreds of years, consumers and investors have taken refuge in gold and other precious metals knowing that they would have value around the world whether or not the US Dollar or any other currency would succeed. As the economy falters, the United States Government has spent significantly more than it’s collecting in tax-dollars, and many are worried that significant inflation is on the way. Since purchasing gold has traditionally been a major hedge against inflation, there is renewed interest in gold and other precious metals as an investment.

Until recently, investors that have wanted to purchase gold have not had an easy way to purchase gold at market rates, and instead have had to work with gold dealers that often charge significant mark-ups over the market price of gold. You likely see many of these companies on TV spots and in talk radio commercials. If you’re looking to buy gold, these companies are definitely not the way to do it. When you buy from them, you’ll pay a marked-up rate, and when you sell to them, they will only give you a wholesale price.

In order to make buying and selling gold at market rates easier, mutual fund companies have developed exchange traded funds (ETFs) which sole holdings are gold. This means that you are able to purchase shares of gold at market rates, hold them as an investment and sell it at market rates whenever you decide to take the money out. The gold inside the fund is actually yours and is held at a vault for you.

The benefit of purchasing a gold exchange traded fund is that you do not have to worry about storing the gold safely without fear of having it stolen and you also don’t have to worry about paying commission to a gold broker when you buy and sell the gold.  Two of the largest golf ETFs are streetTracks Gold Shares (NYSE: GLD) and Market Vectors Gold Miners ETF (AMEX: GDX).