If you’re tired of how the dollar is continuously being undermined throughout the world and you’re looking for the answer on how to buy gold because you’re sure this is the solution. Then read on…
The increase in trend towards buying gold is good news for many but buying gold isn’t as straight forward as it might seem at first. If you don’t watch where you tread you could easily find yourself hitting a land mine or two.
Before we get into answering this age old question on how to but gold let’s take a look at Gold ETF’s and why they could be a great answer for you…
First of all let’s clarify what a Gold ETF actually is… it’s an Exchange Traded Fund that’s aim is to track the price of Gold.
Gold exchange-traded funds are traded on the major stock exchanges including Zurich, Mumbai, London, Paris and New York. As of October 2009, gold ETFs held 1,750 tonnes of gold in total for private and institutional investors. There are also closed-end funds (CEF’s) and exchange-traded notes (ETN’s) that aim to track the gold price.
Each gold ETF, ETN, and CEF has a different structure outlined in its prospectus. Such instruments do not necessarily hold physical gold. For example, gold ETN’s generally track the price of gold using derivatives. All exchange-traded gold instruments, including those that hold physical gold for the benefit of the investor, carry counterparty risk.
What’s good about buying Gold through an ETF is it’s a way of getting some diversity within a portfolio in a very similar way to a mutual fund but without the exorbitant fees.
Typically a commission of 0.4% is charged for trading in gold ETFs and an annual storage fee is charged. U.S. based transactions are a notable exception, where most brokers charge only a small fraction of this commission rate.
The annual expenses of the fund such as storage, insurance, and management fees are charged by selling a small amount of gold represented by each certificate, so the amount of gold in each certificate will gradually decline over time.
In some countries, gold ETFs represent a way to avoid the sales tax or the VAT which would apply to physical gold coins and bars.
The best thing you could do right now is to watch this video that goes into more detail on how to but Gold through ETFs…
If you’re still looking for more information on how to buy gold I highly recommend you grab our exclusive report “Buy Gold Safely”. You’ll discover secrets that no financial advisers will ever want to disclose to you about gold investing. Click here now
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