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Its never easy for a small investor to invest in Gold. There are practical problems with owning gold. It’s heavy, and not easy for the average investor to buy, sell, ship, and store. Gold involves a lot of transactional costs.
Invest in Gold ETF
One easier way for retail investors or small investor can get exposure to gold is through exchange-traded funds. The exchange traded fund is a trading platform where investors can invest in funds that track a particular investment eg. gold, oil, emerging markets etc. Instead of directly buying a commodity, you buy piece of the fund which in turns invests directly into the commodity.
For example, the SPDR Gold Trust holds actual gold bullion. The PowerShares DB Gold Fund holds futures contracts linked to the price of gold, and the Market Vectors Gold Miners ETF holds stock in gold mining companies.
January 7th, 2011 at 4:29 pm
This is the worst advice ever given. Gold ETF != Gold. Gold itself – the physical artifact – stores value and holds intrinsic worth. ETF is paper at best. You make it sound like gold is a burden. It is a pleasure if you know what you’re doing. Shipping costs? Pick it up yourself. Store it in a credit union deposit box or your own vault – neither charges by weight. It’s not THAT heavy unless you’re looking for millions of dollars in one go. Still $1,000,000 in gold weighs a little under 50 pounds.