Gold Bullion Securities ETF Review

Gold Bullion Securities ETF

Gold bullion securities ETF represent another dimension of investing into gold assets without the hassle and safety concerns of storing physical gold. By investing into gold bullion securities ETF you are betting entirely on the spot price of gold while incurring only low fund maintenance fees. Your gold bullion securities ETF could be easily traded at any time similarly to stocks.

Gold bullion ETF tracks the current spot price of gold and allows its investors to diversify their portfolios beyond physical gold bullion market. All gold investment funds carry their own unique ticker symbol helping distinguish them from one another. By buying a share of gold bullion securities ETF you are investing in one tenth of an ounce of gold commodity. This makes gold investing more flexible as you can buy as little or as many shares as you want. Gold bullion securities funds impose an average of 0.4% of your total gold investment portfolio in management and maintenance fees. The fees normally cover salaries of gold bullion securities ETF managers, gold storage costs and other expenses. If you take into consideration costs associated with storing physical gold, it’s a very low fee to pay.

However, with gold bullion securities ETF you are investing into gold assets without actually holding on to a physical gold product. Your gold assets are stored in a secure and remote location. In stable economic environment that works beautifully, but, unfortunately, in turbulent times some gold bullion trading funds might go bankrupt and you will be left with shares that are virtually worthless. While this is a very grim scenario, some gold investors still prefer buying physical gold opposed to buying shares of gold bullion trading funds.

When looking into actual gold bullion securities ETF’s, consider the ones that already have a good trading history, headquartered in the US, Canada or a stable European country. The last thing you need for your bullion fund is to store gold in the politically unstable area which could be very risky. Research all gold bullion securities ETF options before making a final decision on which shares to buy.