GLD ETF: Which Is a Better Investment, Gold or Gold ETFs?

Have you heard about gold ETFs but aren't sure if you should invest in them or actual gold?


Gold has long been considered a safe investment. In fact, gold was such a hedge against other risks that governments used it to back currencies.
Today, this precious metal is one of the cornerstones of a good investment strategy.

New ways of investing in gold have been emerging. One of the most popular is the gold ETFs. These funds allow investors to invest in gold, often at a low cost.

Like other investments, most gold ETFs come with risks. Should you invest in precious metals, or is an ETF a better choice? Many investors are wondering which is the smarter move.

The Ins and Outs of Gold ETFs

Gold ETFs are relatively new to the investment scene, but they've become very popular. Most investors see them as a good way to buy into the precious metals market without spending too much.

What is a gold ETF? Like other exchange-traded funds, gold ETFs allow investors to buy shares in the fund. And these shares are backed by gold.

People like gold ETF trading because it's convenient. There's no need to store physical precious metals. This also reduces the chances of theft.

Finally, people like gold ETF price points. Investing in physical gold can be quite costly, so ETFs offer a more affordable solution.

The Risks of Gold ETFs

The trade-off for investing in most gold ETFs is increased risk. Most investors don't actually hold enough shares to request physical gold.

Instead, most ETFs are currently set up to settle in cash. Even if an investor owns enough shares to buy gold, the fund reserves the right to pay cash.

The chain of custody also becomes more complex, which could add to the risks of buying gold ETFs.

Markets are growing more volatile and a stock correction seems likely. Investing in a traditional gold ETF may not make sense.

Gold as the Alternative

Investors have often looked to gold to help them reduce risks. Gold's value tends to increase against inflation. As physical commodities, precious metals don't lose value the same way stocks can.

In short, gold is almost always a safe investment. Even when the price tumbles, it tends to rally again.

Owning physical precious metals in a volatile stock market makes much more sense. Investors should seek ways to buy into precious metal ownership. New technologies are making it more convenient than ever.

Another Investment Choice

There's yet another emerging option. Digital Gold or Silver backed by physical precious metals. Unlike ETFs, these new opportunities offer ownership of gold, with all the convenience of ETFs. At OneGold we offer the liquidity and low cost of ownership like ETF's, coupled with the security of knowing that you are buying actual physical precious metal, stored at the Royal Canadian Mint. 

It's Easier than Ever to Invest

New digital trading tools can make investing in gold easier than ever before. If you want to get started investing in precious metals, we can help

Who is OneGold?

OneGold, Inc. is the first online marketplace where users can buy, sell, redeem, and manage their digital precious metals. OneGold looks to be a game changer in the digital precious metals space by curating the best, most secure digital products and providing an intuitive way for users to have access to them.

OneGold, Inc was founded in 2018 through a partnership between APMEX, Inc. and Sprott, Inc., OneGold, Inc. two industry leaders in precious metals.

How does OneGold pricing compare to ETFs and owning physical metal?

Many ETFs charge between 40 and 60 basis points per year for management fees. OneGold charges only a small storage fee of 12 basis points yearly for gold and 30 basis points yearly for silver.

In comparison to owning physical metal which is both cumbersome and risky, the digital option is an economical and safe solution.

Is the VaultChain product a cryptocurrency?

VaultChain is the digital record of .9999 fine physical gold and .999 fine physical silver stored at the Royal Canadian Mint. VaultChain leverages elements of the same technology underpinning Bitcoin and other decentralized cryptocurrencies. However, the Tradewind Platform is a private and permissioned ecosystem limited to regulated dealers and institutions.

How is VaultChain Gold different from an ETF?

Each unit of an ETF represents ownership in a fund or trust that in turn holds physical gold with a bank or other depository. The fund or trust charges owners an annual fee to cover management, storage, marketing, and administrative costs. Final beneficial owners do not control the underlying asset and cannot take physical delivery. VaultChain Gold is physical gold owned directly via a blockchain database; there is no intermediary trust or fund, or any associated fees. It is deliverable in full.

How can I be sure OneGold is safe to do business with?

OneGold is backed by one of the most trusted names in precious metals, APMEX Inc. as well as one of the largest names in the investment industry, Sprott Inc. With over 50 years of combined experience, both companies have a long-standing history of best in class performance in quality products and solutions and customer care.