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In today’s economic environment many people are shifting their investment strategies. While at one time many investors were willing to risk their money for the chance of a high return, today more and more people are no longer willing to take the risks they might have in the past. When it comes right down to it, many people are looking at more conservative and safe investment options. One popular investment option is Gold ETF Investing. Gold over history has been a pretty safe investment option and more and more people are turning to it today.
What Exactly Is Gold ETF Investing
Gold ETF investing is a means for investing in gold that removes the hassle and makes it possible for just about anyone to make the investment. If you were to purchase gold on its own, there is a great deal of care that must be taken in order to protect your investment. ETF gold investing eliminates the need to insure you investment as well as worry about where to store your purchase, how to protect it and more. You do not need to worry about moving the gold once purchased or go through the hassle of transferring the gold again when you decide to sell.
When you invest in a gold ETF fund, the fund will maintain and protect your investment. ETF gold funds purchase large amounts of gold and take on the responsibility of housing and protecting the gold for you. They then issue gold shares in baskets, allowing you to easily invest by purchasing shares of gold.
Purchasing Gold Through A Gold ETF Fund
Purchasing gold is actually very simple through an ETF fund. Most ETF gold funds are traded on the American Stock Exchange and any investor has the option to invest in gold shares. Trades are extremely simple and very often carry a lower transaction fee compared to other investment options. Investments are straightforward and when the price of gold rises, your investment will go up at the same rate, meaning that if gold was to go up 5% your investment would also go up by 5%. Additionally, you can usually invest in small amounts at one time making investing in gold shares affordable. Most funds will allow you to start your investment with as little as one ounce. Finally, you can invest in a gold ETF fund through a broker or right from your own on line account.
Investing in gold also offers some great tax advantages that you will want to be aware of. As an investor you will not need to pay capital gain tax on your gold investment until you decide to sell and liquidate your return.
What You Need To Consider
Overall, investing in a gold ETF fund is considered by many to be the most advantageous way to invest in gold. There are numerous ETF funds to choose from and you will want to carefully examine each one before making a decision on which one is the right one for you.