With stocks in a long swoon and the economy in the dumps, it s probably not surprising that more investors have turned to gold as a way to survive a potential financial Armageddon. Global demand for bars and coins rose 87 percent in 2008 over 2007, according to the World Gold Council. Indeed, the metal has been something of a safe haven lately. Since the beginning of the year, gold is up about 6 percent while stocks have tanked.

Gold has its shortcomings. For one, the precious metal doesn t reliably appreciate: From 1980 through 1999, gold lost nearly 60 percent of its value. Some of those stocking their bunkers don t care about returns, of course; they re preparing for doomsday. But don t expect to be able to pay for gas or groceries with gold. Gold markets wouldn t likely be open, so merchants wouldn t be able to value the metal even if they understood what they were being offered, says Jon Nadler, senior analyst for metals dealer Kitco.

That said, gold is finding a place as part of the commodity allocation in a diversified portfolio. Here are four ways to own it:

Bullion and coins

Gold bars and coins are the best option for those who want to keep their gold close at hand. Buy from a reputable dealer with at least 10 years in business. Make sure your merchant buys from wholesalers supplied directly by the U.S. Mint, Nadler recommends, and don t pay premiums of more than 7 percent over the spot price of gold. And keep in mind that banks rarely insure the contents of their safe-deposit boxes, says Scott A. Travers, author of "The Coin Collector s Survival Manual."

Exchange-traded funds

Some gold ETFs, like the SPDR Gold Shares (GLD), are backed by physical gold, although shareholders don t have the option of taking possession. With more than $30 billion in assets, SPDR Gold Shares is the second-largest ETF by assets in the world and carries a low, 0.40 percent expense ratio. An ETF is easy to buy and sell.

Pooled instruments

These custodial accounts give clients access to a pool of precious metals stored in a vault with other clients assets. Kitco s custodial accounts cost no more than 3 percent over the spot price of gold, and consumers have the option of taking possession of the metal for an additional fee.

Gold-mining stocks

Investors who like to bet on gold with a little more volatility can look at stocks of miners. Mining company profits can change rapidly with the price of gold, so when gold s price goes up, mining stocks tend to go way up (conversely, when the price of gold falls, miners can fall even more). But miners aren t always a pure play on gold political instability in the countries where the mines are can also affect a mining company s profits, and it s stock price. Last year, mining stocks and gold were less correlated than usual, says John Hathaway, manager of the Tocqueville Gold fund.