Known as a GETF a Gold Exchange Traded Fund works by keeping track the price of gold. It is a special type of, so works similar to, regular ETF, exchange traded fund.
Much like stocks, GETF’s are an investment vehicle on many leading stock exchanges. They hold their value at approximately the same as their underlying assets, in this case gold.
With their stock like features, fairly low in cost and great tax features ETFs have been a very popular investment vehicle in the last 20 years or so. These have only officially been around since 2003 but they are gaining in popularity.
Some of the major stock exchanges that GETS are traded on include New York, London, Paris, Zurich and Mumbai.
As you don’t actually store the gold there are obviously fees associated with owning these funds. A typical trading commission fee is around 0.4% and in the US you are charged annually for storage. Storage, insurance and management fees are often paid for by the broker selling a tiny amount of the gold represented in each certificate.
In some regions of the world owning gold stocks could be a way to avoid taxes and VAT associated with physically owning gold. Sadly in the US you are charged for the commodity so are subject to 28% (at time of writing) capital gains.
Known as Exchange Traded Gold on the stock markets you can find it listed under some of the following names:
o Gold Bullion Securities
o SPDR Gold Trust
o ETF Securities Gold Bullion Securities
o New Gold Issuer
These gold stock are sponsored by the World Gold Council. August 07 reported almost 628 tonnes of stored gold. 80% of the gold is currently accounted for by SPDR Gold Trust. This is the largest liquified share on the market.
So if you don’t have a garage big enough to store all your gold ingot then owning virtual gold and trading via a leading stock market may be a great choice!
Check out my site if you want to learn more about How To Buy Gold and Silver and what is the Current Value Of Gold
Author: Ian Parks
Article Source: EzineArticles.com
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