What are the benefits of investing in gold ETFs? Now there are many channels for investing in gold, among which paper gold , gold td , spot gold , etc. are the main channels for investing in gold, but most of the time, this direct investment method has relatively high professional requirements for investors, often Less profit, more loss. The gold ETF is very popular among investors who lack professional knowledge because it is a dedicated financial management.
What is a Gold ETF?
Gold ETF funds refer to financial derivatives that use gold as the underlying asset to track fluctuations in spot gold prices . Its operating principle is that large gold producers consign physical gold to fund companies , and then fund companies use the physical gold as a basis to publicly issue fund shares on the exchange and sell them to various investors. Commercial banks act as fund custodians and fund managers. Investors in the physical custodian bank can redeem freely during the duration of the fund. Gold ETFs are listed on stock exchanges, so investors can trade them as easily as buying and selling stocks, or they can buy them through online banking.
What are the advantages of investing in gold ETFs?
- Gold ETFs are very convenient to trade on the market, with strong liquidity and low threshold.
- Investors who buy gold ETF funds can not only avoid gold custody fees, storage fees and insurance fees, but also invest in gold products with less management fees.
- Gold ETF funds can be reversed within days, thereby improving investment efficiency.
- High security
Gold ETF represents part of the fund’s inseparable beneficial rights and ownership, and the physical gold behind it is kept by a commercial bank with good reputation. Because it is traded on the stock exchange, it is strictly regulated by the exchange, and relies on the exchange’s advanced trading system, the transaction is safe and reliable.
- Consistent with the value of gold . Investing in gold ETF refers to investing in gold spot contracts, which closely follow the changes in gold prices , and have the same anti-inflation and hedging functions, and the volatility of investment returns is lower than that of stocks, and investment risks can be controlled.
- Affected by the supply and demand on the market, gold ETFs will generate discounts and premiums, which can be arbitraged.