Exchange Traded Funds
One of the newer ways of investing in gold is through exchange traded funds. Gold is traded in the form of securities on stock exchanges in Australia, France, Dubai, South Africa, Switzerland, the United Kingdom and the United States and cross-listed on additional exchanges across Europe and Asia. By design, this form of securitised gold investment is expected to track the gold price almost perfectly. Unlike derivative products, the securities are 100% backed by physical gold held mainly in allocated form, and are generically referred to as "exchange traded gold". The securities are all regulated financial products.
Exchange traded gold provides retail and institutional investors with an efficient and cost-effective way to invest in gold. It aims to overcome the existing barriers to gold as a practical asset and trading tool. For many investors, costs associated with buying and selling the securities are expected to be less than the costs associated with buying, selling, storing and insuring gold bullion in a traditional allocated gold bullion account. Furthermore, exchange traded gold can be traded as easily as any other security listed on a stock exchange.

Futures and Options
Investors seeking leverage may prefer futures contracts or options. Both operate like their counterparts in other marketplaces. The price of gold futures is determined by the market's perceived value of what the carrying costs ought to be, and consequently is typically higher than the spot price.
Both futures and options can be traded through brokers on regulated commodity exchanges, such as the New York Mercantile Exchange Comex Division (recently merged with CBOT) and TOCOM. Gold futures are also traded in India, Dubai and Turkey. Forward contracts are agreements to exchange gold at an agreed price at a future date, and can be used to either manage risk or for speculative purposes.
These contracts are negotiated directly with counterparts and consequently, unlike standard futures contracts, are tailor made. However, unlike futures which are guaranteed by the exchanges on which they are traded, there is a degree of counterparty risk with forwards. They are also less liquid. Warrants give investors the right to buy gold at a specific price on a specific day in the future. Investors pay a premium for this right. Warrants are usually leveraged to the price of the underlying asset, but gearing can be on a one-for-one basis.
Gold certificates
Gold certificates are a type of warrants issued predominantly by banks in Germany and Switzerland. Some certificates are traded on exchanges, others are available only "over the counter". Some represent one for one ownership of gold held by the issuing bank on the client's behalf, whilst others are closer to derivative type products like options, offering clients geared exposure to the gold price. Given the range of products to which the term "certificates" is applied, investors should check structures carefully with their advisors before committing funds.