What are the advantages of Gold ETFs?
Gold ETFs offer the best of both worlds. The investor has the advantages of owning physical gold, without suffering additional expenses and losses like making charges (for gold jewellery), and bank vault charges (for keeping coins or bars or jewellery. The investor does not need to worry about insurance and transportation. • Jewellers and banks charge premium and making charges on the gold sold. So, if investors purchased gold from the retail jeweller or a bank, it could have resulted in a straightaway loss of 5-20%. • There are no concerns of quality- The gold backing the ETF is sourced from London Bullion Market Association approved refiners and stored in vaults. • The investor need not worry about thefts – The fund house takes care of all risks of storage and safety for a minimal expense ratio.
