For those wishing to own physical gold without storing it, physical gold ETFs are an excellent option. Many financiers who want exposure to the yellow metal have been buying up gold ETFs for this very function.
An ETF is a monetary instrument that trades on stock exchanges like the NYSE in the same way as do shares of public corporations. Initially, ETFs were built in a method to mirror the motion of a stock index like the S&P 500. Because ETFs trade on exchanges like stocks, they also permit financiers who would not readily have access to certain investments the opportunity to easily buy and sell a security that directly mirrors the movement of that specific investment.
Their instant success made ETFs so famous that the investment banks who launched them started constructing ETFs that were tied to more exotic indexes, commodities, and other underlying monetary instruments. There are numerous various structures of gold ETFs, however for one of the most part they all rise and fall based the rate of gold. Some ETFs track the actual cost of gold bullion in the market. Other gold ETFs are connected to a gold index. Still, others are made up of the different gold mining business.
Physical gold ETFs can be bought through your regular stockbroker the same way you purchase other stock. An example of an American gold ETF is the SPDR Gold Trust, ticker sign GLD, which is noted on the NYSE. Another well known gold ETF is the iShares COMEX Gold Trust (NYSE: IAU).
Their immediate success made ETFs so famous that the investment banks who introduced them started building ETFs that were connected to more unique indexes, products, and other underlying financial instruments. There are several different structures of gold ETFs, but for the many parts they all rise and fall based on the price of gold. Other gold ETFs are linked to a gold index. An example of an American gold ETF is the SPDR Gold Trust, ticker sign GLD, which is noted on the NYSE.