News Gold ETFs
Gold “exchange traded products” are “exchange traded funds” (or ETFs), “closed end funds” and “exchange traded notes” all designed to track the price of one of the most valuable precious metals – gold. Gold ETF is traded on major stock exchanges around the world, including New York, Zurich, Paris, and London.
Each gold ETF has a different structure, which is outlined in the prospectus. Trading fees The typical commission for trading gold ETF is 0.4%; storage fees (annual) are also charged. However, in the U.S., a majority of brokers charge just a small fraction of the regular commission.
The yearly fund expenses – including storage, management fees, and insurance – are covered by the sale of small fraction of gold (represented by each share). The amount of gold in each share gradually declines over time. Gold ETFs are also a good way to avoid sales taxes applied to physical gold bars and coins in other countries. IN the U.S., though, sales of gold ETFs are considered sales of underlying commodity, so they are also taxed. Investing in gold Gold is easily the most popular precious metal investment and is used as a safe haven or hedge against economic, social, political, and currency crises.
The recent declines in the investment market, growing national debt, widespread currency failure, worldwide inflation, social unrests, and wars have spurred further interest in gold. Just like any commodities market, the gold market is also subject to speculations, particularly “futures contracts” and derivatives. It’s important that you learn as much as you can about investing in precious metals before you invest in gold. Used properly, it can be a very good investment. It has historically been able to retain its value over time, and has demonstrated steady appreciation relative to most other currencies in medium term and long term time frames.