Gold ETFs vs. Physical Gold
Precious metals exchange-traded funds (ETFs) have been gaining popularity in the news lately.
Due to growing uncertainty of President Trump’s policies and their impact on the economy, investors have been turning to gold, including gold ETFs, as a safe-haven asset.
Although gold ETFs have been receiving more attention as an alternative option to direct ownership of gold, not everyone fully understands what ETFs actually entail. A common question we get asked is, “What’s the difference between owning gold ETFs versus physical gold?”
Our friends at BullionStar have written an informative report that can help you answer this question and give you a better understanding of gold ETFs. Here’s a sneak peak:
High Cost of Non-Physical Ownership
The costs of investing into gold-backed ETFs are not cheap. For example, the SPDR Gold Trust has an expense ratio of 0.40% per annum which covers fees incurred by the Trust to pay the multitude of entities involved in running the Trust, such as sponsor fees, marketing agent fees, trustee fees, custodian fees, listing fees, and legal fees. And these ETF’s do not even provide investors with ownership of physical segregated and allocated gold ownership...
Gold ETFs claim to be physically backed by gold held in bank vaults, but holders are typically not allowed to access nor ever take physical delivery of the underlying gold.
For those of you who want to physically hold gold in your own home or storage, we offer a wide variety of gold coins, bars and rounds. Discover the current best values in gold investing in our 'hot buys' section below!
Call us at 800-831-0007 or send us an email to purchase your gold today!
*Disclaimer: The views and opinions expressed in this report are those of the authors and do not necessarily reflect ASI’s views and opinions. The statements made are for informational purposes only and are not intended for financial advice. All investors should seek independent financial advice from a qualified professional if they wish to make precious metals investments.