Gold is one of the most important tools used by investors and traders to work and operate at stock markets. Why is this so?
For many centuries, gold was the measure of money — a kind of value that can be considered as the equivalent of “eternal” money. As money, gold went through a great evolutionary path, ultimately passing the role to paper money, and now to electronic ones.
Owning the gold as it is, does not bring income, gold should “work” as a tool and move the trade in the exchange market.
What are the advantages and disadvantages of buying physical gold vs. investing in gold ETF like GLD, IAU, or SGOL gold blockchain token?
How profitable are investments in gold and blockchain gold trading ?
Why is investing in gold is so attractive to investors? What is the power of this metal??
The economy develops cyclically — the upswings are followed by recessions.
Since the formation of paper money, the world began inflationary processes, which affected the price of gold. The transition to free exchange rates and the formation of the exchange markets gave a platform for new tools and currencies to be exchanged.
Today GOLD is traded at the major exchange markets as Bancor.network, Simex.global and Idex.market, it is became a cryptocurrency asset which attracts more and more interest in dealing with the new stable coin.
What are the advantages and disadvantages of buying physical gold ? Which Gold ETF is Right for You as a player at stock market.
There are now a number of ETFs available that allow investors to deal with it. But when it comes to make an allocation, many are stuck between ranges of available options. Below, we outline the three most popular gold ETFs.
GLD is the largest gold ETF
GLD has been trading since 2004 and tracks physical bullion.
The fair amount of controversy concerning GLD, according to opinion of bloggers and investors the GLD is nothing more than a “paper asset” and that there is no actual gold behind the fund. Its price is representative of approximately 1/10th an ounce of gold and the fund comes with a number of advantages and it fits for a long-term strategy.
GLD is Right for an active trader seeking to either operate on gold’s movements or quickly execute positions in the precious metal.
IAU is a similar fund to GLD in that it tracks physical gold bullion.
Each share is representative of approximately 1/100th of an ounce of gold. But IAU’s real advantage flow down to its fee superiority. IAU charges by 0.15% less than GLD, making it the ideal long-term hold. From the first look, the number sounds insignificant but consider two million-dollar portfolios, one of which is invested in GLD and the other in IAU, the GLD portfolio will incur annual expenses of $4,000, while its competitor will shell out only $2,500. That $1,500 difference seems miniscule for just one year, but drag it out over a 30-year investment period and you will get the difference between fees amounts to $45,000, or 4.5% of your original investment. Benefit yourself a quick 4.5% could have been as simple as buying IAU over GLD.
IAU is Right for a long-term investor seeking to hold on to your ETF for an extended period of time.
SGOL is another well-known gold ETF. It gives a different manipulation on physically-backed ETFs. Most of investors fear for the safety of their physically-backed ETFs ,they do not trust the vault locations to securely hold their bullion. SGOL keeps all of its gold in Switzerland, allowing the paranoid investors to gain peace of mind when making their gold allocation. ETF trading began in 2009 and quickly gathered assets as gold bugs around the world. Expense ratio of 0.39% is one basis point lower than the popular GLD.
SGOL is Right for a long-term investor who wants a vault location in the most secure Switzerland.
Choose your tool, and be confident with it…