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 expensive 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 and 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 or in the United States via our trusted vaulting partners.
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.
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.
How to Start Gold Investing with OneGold
With a deep understanding of precious metals unmatched in any competing partnership, APMEX and Sprott came together with a shared vision for the evolution of precious metals ownership. OneGold is the result of the knowledge, experience, and resources of these two globally recognized partners.
- Create a Free Account at OneGold.com
- Choose between the U.S. or Vaultchain precious metals investment metals.
- Low premiums & tight spreads.
- Purchase using Bitcoin, Check, Credit Card or connect your Bank Account.
- No need to wait on funds clearing, you can “Buy Now, Pay Later”.
- Fully allocated and segregated investment grade precious metals.
- Annual storage fees are Silver .30% & Gold .12%