Gold ETFs pros and cons

Here you will find the right answers

About Moneyland Forum

The moneyland.ch forum lets you exchange knowledge on numerous topics related to money and get answers to your questions at any time. Join forum users and experts in discussions relating to banking, investment, insurance, retirement, telecom and everyday money topics.

Show categories

Please login in or sign up to participate in the forum.
 
avatar
  • BenutzernameMoneyland User Questions
  • Status Member
  • Registriert seit1/27/17
  • Beiträge2142

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

 
avatar
  • BenutzernameMoneyguru von moneyland.ch
  • OrtSchweiz
  • Status Expert
  • Registriert seit8/4/15
  • Beiträge4017

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