How to buy gold

Psst, want to know about an investment that's shooting up? Gold.

Yes, at time of writing the yellow metal is up 16% against the pound this year and rose over 40% last year. Not bad when the FTSE 100 lost 31% in 2008 and house prices are sinking.

On 26th January 2009, gold hit the record price of £655 an ounce.

So what's so great about gold? Well, aside from wearing it, it has two age old attractions: it's a port in an economic storm and, if inflation takes off, it keeps its value, unlike the pound in your pocket.

Rarity

Its rarity guarantees its value. It is said that all the gold ever mined would fit into one giant oil supertanker and finding more is difficult and costly.

The same cannot be said of the world's paper currencies which, in extreme cases, can be reproduced until they are worthless. In Zimbabwe, for example, inflation is 13.2 billion % a month. The equivalent in Britain would mean a 75p loaf of bread at the start of January sell for £99,000,000 by the end of it!

Fortunately, UK inflation is low (3.1%). However, the credit crunch, global recession and super-charged government spending have jangled nerves and that's why gold is popular again.

Here are eight ways to buy gold...