The Gold ETF

Investments that have steadily held their value during unsteady and uncertainly economic times are the investments in precious metals, namely gold and silver. Investments in gold and silver stocks have become known as more reliable than investments in other stocks and bonds because their values have not been fluctuating as much as others. The still relatively new way of investing in gold ETF has made gold an even more attractive option to investors.

Previously investors in gold had to have a safe house for their gold to be stored. It would most likely have to be insured which would be costly considering its value. Movement of gold bars was difficult at the best of times which meant selling portions of your investments at different times was quite an obstacle. When exchange traded funds (ETF) were introduced this all changed. Not only could investors now buy and sell gold as easily as they could stocks, they could broaden their investment portfolio to many other industries such as other precious metals, natural gas, water and other commodities that were previously difficult to trade because of their nature or size.

A distinct advantage of gold ETF is the fact that investors can purchase fractions of an ounce, not previously possible when dealing with the physical bars of gold. This means that the investment option is now open to so many more investors. Previously some investors may not have been able to break into the precious metal market because of lack of start-up capital. Any good broker will tell you that a good comprehensive investment portfolio contains investment in some precious metals, now that has become a reality for so many more investors.

A lot of investors are starting to discover the tax advantages of ETF. For the purpose of taxation many countries do not view the investor as the owner of the precious metal, or other commodity. This is best discussed with your broker and accountant once you make the ETF (i.e financial ETF, natural gas ETF, water ETF, etc.) investment.

Brokers usually charge a commission for ETF services but it is minimal, they often have other annual fees as well, again something best discussed direct with your chosen broker. What is great about gold ETF is that is it easily to steadily increase your investment over time. As buying and selling is made easier with ETF it means a quick call to your broker can see your investment increase to your chosen level. It is a worthwhile and easily accessible investment.

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