Investing in Gold is having a vision for the future and trying to protect it. There are many ways in investing gold this include ETF which stands for Exchange Traded Funds. The gold is usually in mutual funds when trading it. There are only 2 gold ETF that one can use in the United States, they come with a symbol that is GLD or IAU. There are many types of ETF that have come up but the two stated above are the major Gold ETF.
It is very important to know all about ETF before investing in it. Here are some tips on investing in gold ETFs:
ETF is similar to the stock exchange we know. It is more profitable compared to other ways of investing in gold. It is the best when investing on large sums.
With the Gold ETF it can either have a commission or brokerage. When it has commission, it has low charges from 0.5 to 1%. If looking for a broker you need to look for one with the lowest charges.
Just like normal stock, it is good to keep on checking on the trend within the gold market. If you are lucky you can actually have a high return. You can buy the gold in low price and sell it on a higher price making huge profits.
Do not use all your investment in buying gold. Most investors use about 1% on the gold ETF. You can use about 5-10% of your investment on gold ETF. In case of a fall in the gold price, you will not lose all your investment.
When it comes to the gold investment, it is good to consider the duration of the investment. It is a better asset to investment in if it is short or medium term investment. This is because it provides a high return compared to the long term. The short term investment is usually risky as well because the price can go up and down in a split of a second. It is very easy to get profit and also to get losses.
If time is not on your side and you have a manager who manages the ETF. It is good to be keen with the transaction and trades being done for you. It is very easy for the manager to con you. Always have regular monitoring this will ensure your investment is not a loss.
When it comes to selecting ETF products or if you looking for a fund manager. Research on them. Make sure you have understood all ETF products. Then you can choose what suits you. When it comes to the fund manager you got to check on his previous performance. Do a thorough background check up on the fund manager.
The ETF gold has benefits like it is very inexpensive this is because it has no entry or exit fee. It experience capital gin tax but no VAT, Wealth tax on gold ETFs. ETF gold ensures you do not experience a very big loss. It is much convenient this is because it is very easy to store Gold ETF and concern like theft is rare.