LONDON -- The price of gold has come back with a bang since the latest European Central Bank bond purchase program and the U.S. Federal Reserve's QE3 were announced. Early on Friday morning, spot gold was trading around $1,771 per ounce, down slightly from a high of $1,779 earlier this week but up by more than 9% over the last month.
Of course, the only practical way for most private investors to hold gold is through an ETF, and the $63 billion SPDR Gold Trust ETF
Miners outperforming gold
Many investors prefer to invest in gold-mining stocks, rather than gold itself, as investing in miners offers the potential for leveraged gains on the price of gold.
Investors in Cluff Gold
Meanwhile, FTSE 250 miner Petropavlovsk
Finally, the largest pure gold miner in the FTSE 100, Randgold Resources
Shares versus commodities
This is a key point to remember for commodities investors: Shares in commodity companies have outperformed their underlying commodities many times over the last 10 years, thanks to their ability to magnify their gains through successful development of new resources. This free report from the Fool, "Ten Steps To Making A Million From The Market," contains some excellent tips on identifying and investing in potential multibagger shares, including resource shares like gold miners. I strongly recommend that you download it now, as it will only be available for a limited time.
Further investment opportunities:
Roland does not own any shares mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.