Gold ETF is a financial derivative product that uses gold as the underlying asset to track the fluctuation of spot gold prices . Gold ETFs can take profits when the price of gold rises. Spot gold , also known as London gold , refers to spot transactions that are delivered immediately after the transaction is completed or a few days later. It is an international investment product. It is a gold trading platform established by a gold company , which allows investors to buy and sell online in the mode of leverage ratio.
Differences between gold ETFs and spot gold:
- Gold ETFs are invested in a fund model. Investors investing in gold ETFs hand over money to fund companies or stock exchanges for financial investment, which they cannot control;
The spot gold investment is completely able to master the buying and selling transactions.
- Gold ETF only has a trading mechanism for buying up and not for selling down. Only when the price of gold rises, can you make money by buying up;
Spot gold has a two-way trading mechanism, no matter whether the price of gold is rising or falling, as long as the direction is right, you can make money.
- Gold ETFs are backed by physical gold. Investors buying ETF shares are equivalent to purchasing a corresponding amount of physical gold . Investors can withdraw physical gold when they apply for redemption;
Spot gold is not supported by physical gold. It is a virtual gold buying and selling transaction based on international quotations for gold, and the corresponding physical gold cannot be withdrawn.阿