The financial turmoil of the last decade has brought many challenges for investors seeking growth and security. As the stock market looks increasingly risky, more and more investors are attracted to buying gold as a safe haven against inflation and financial instability, but may not be clear where to start. These may be the 5 best bets for buying gold.

Of course, the best gold investment option for you depends on your main reason for buying gold whether it is as a safe haven, or for profit. Investments which bring the highest potential profits are the most volatile, and so carry the highest risk. Among the gold investment possibilities, gold options and futures, and gold mining stocks, carry the highest potential return and the highest risk.

Holding Physical Gold

If you are primarily concerned with safety, there is nothing to beat holding the physical product; gold bullion coins or bars. By holding the tangible asset, you dont have to worry about the volatility of paper assets, and you possess the only currency that has intrinsic value. The disadvantages are that, unless you hold the gold in an IRA, you have the problem of storage, and you need to hold it for the long term to be sure of a profit.

Investing in gold ETFs, or exchange traded funds, is a very popular alternative to holding the physical product. As the shares are fully backed by physical gold, they enable you to have full exposure to the performance of gold, without the problems of storage. These funds represent a fairly safe investment, but of course, if a fund goes bankrupt, as occasionally happens, you have lost your investment, as you didnt own the actual gold.

Gold Mutual Funds

These are actively managed funds that hold gold-related stocks, including stocks in gold mining companies, although most own a range of other commodities as well. Some invest in the indexes of gold mining companies, while others are tied to gold prices directly. The advantages include the low minimum investment requirement, the low cost, and the security of a managed fund.

Mining Stocks

As an alternative to mutual funds, you can invest directly in mining stocks, whether of exploration or production companies. Exploration companies are engaged in prospecting for gold on their property, so their stocks can rocket if gold is found, but will be worthless if not. Stocks in production companies offer attractive profits with lower risk.

Gold Options and Futures

These are contracts to buy or sell gold at a given price, at a given time in the future. They are the cheapest way to get into the gold market, as they enable you to control a large investment with a small amount of money, and the commission requirements are very low. The potential profits can be huge, but the losses can also be huge. These are the most risky investments, so are only suitable for experienced investors.

With the volatility of fiat currencies and dollar-based investments, it is clear that stability will only come from tangible assets, especially gold. These are the 5 best bets for buying gold. Which of them you choose depends on your personal investment goals, and your tolerance for risk and reward.