What is ETF Gold Investment?


The love for Gold is going high all around the world. People love Gold because Gold is Money. In all ancient civilizations, Gold is the symbol of humanity, and it is widely used as a money exchange.

Gold is very simple and easy to liquidate; it acts as security against recession, and having a high value is the main reason why people love to buy Gold.

Many research after the recessions stated that there was no serious fall in the purchase of Gold during the credit crunch.

Whether it is a recession or deflation, people love to buy Gold as an investment to get a high return from them when they have to liquidate the Gold.

ETF gold is a very good option in the market to invest your money and get a high value for your return on investment.

In this article, we have discussed all the needful details about ETF Gold Investment and how to invest your money in ETF Gold to get the maximum return.

If searching for an idea for your money investment, then go through this article, and you will get the best ideas about ETF investment in Gold.

What is a GOLD ETF or Gold Exchange Traded Fund?

GOLD Exchange Traded fund (ETF) is an Investment where you have invested your money in Gold, and your money or fund is going to trade on the stock exchange.

In Gold ETF, you have to invest in the Gold producing companies or gold mining companies by buying ETF units of their companies, just like the share market.

These Gold ETY units are listed on the stock exchange, and your ETF is traded, and then, just like the share, your ETF value will increase or decrease according to the performance of your ETF.

The ETF earnings and the earnings from selling or buying physical Gold are nearly the same. ETF Gold is an investment in the Gold value without carrying the physical.

The price of one gram or one ounce of Gold slightly differs from one ETF unit of Gold because in physical Gold, if you buy coins or bars or an ornament, then you have to give the making charges.

In Gold ETF, you don’t have to give the making charge, and holding one Gold ETF that means holding the value of one gram of Gold.

Advantages of Investing in Gold ETF

Trading in gold ETF and buying and selling ETF units have many advantages over investing or buying and selling physical Gold. In this section, we are going to see the benefits of Gold ETF over physical Gold.

  • Physical gold price varies from shop to shop, but the ETF price remains constant, and you do not have to give the making charges in case of an ETF unit.
  • ETF Gold is available in a small denomination, and you can buy 1 ETF, which is equivalent to one gram of physical Gold. It is very hard to buy 1 or 2 grams of Physical Gold as in Gold ETF. You can buy as much as you want to buy.
  • In the Gold ETF, you don’t have to worry about price variation, quality, Purity, weight, and unit of purchase.
  • You can sell your Gold ETF at any Instance of time. No need to go to the jewelry shop and bargain and fix the deal. You will get the value according to the traded value of the ETR, and it depends on the performance of your ETF in the stock market. The best thing about Gold is day by day, the price is hiking, and in the past 20 years, we have seen the price of Gold bouncing as the year passes. Physical Gold has less liquidity as compared to Gold ETF because you can sell your ETF in one click.
  • In gold ETF, your KYC documents are linked with your ETF gold account in which you have ETF companies give the digital locker where ETF Gold is Stored. You can check the weight of your Gold on your mobile by logging in to your digital Gold locker with your account credentials. You can check the quantity and performance of your Gold ETF at any time from your mobile phone.
  • Gold ETF is very tax efficient, and in this no service tax, vat is imposed on the ETF. You can buy a certain amount of physical Gold, whereas you can buy as much as you need in Gold ETF units.

Wrap Up

If you want to invest the money and you are in search of the best idea for investment, then buying Gold is good investment because we have seen that in the past that Gold never loses its Real value.

In this article, we have stated the very option to invest in Gold which is Gold ETF. Just go through the article to learn about the new option to invest in Gold. We hope that this article will help to know about Gold ETF Investments.

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