Gold ETFs pros and cons

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  • BenutzernameMoneyland User Questions
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Are gold ETFs a safe investment? What are the pros and cons? Is investing in physical gold a better option?

 
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  • BenutzernameMoneyguru von moneyland.ch
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Hi there,

Gold ETFs are exchange traded funds which follow a gold price index (typically gold vs USD). ETFs generally have lower TERs than conventional investment fund because administration is largely automated. That makes gold ETFs an affordable choice for ongoing investments based on the price of gold.

Physical gold is primarily a secure, long-term investment vehicle which you can hold as an actual commodity. Because mints and banks typically charge a markup on the going rate when they sell you gold bullion, physical gold is not ideal for short term investments.

Best regards from Moneyguru