Tuesday, March 3, 2009

Investing in Gold ETF

Investing in gold through ETF (Exchange Traded Fund) is very easy and does not put any burden on your monthly financial budget. Buying a unit of gold through ETF is just like buying real gold. Gold ETF are available on the stock market and valued based on the current market price of gold. Banks take physical delivery of real gold and then issue ETFs in units of gold.

A single unit of gold could be as low as 1/20 of an ounce and cost just about $50. Depending on the cash you have available every month you could buy units of gold ETFs. Lets say every month you earmark $50 and buy a single unit of gold. 2 years down the line you would have accumulated an ounce of gold through ETFs and your portfolio will be valued depending upon the price of gold at that time.

If you intend to take delivery of your gold, you can submit your ETFs and get gold in physical form such as coins of bars. You could just liquidate the ETFs and take cash delivery also.

No comments:

Post a Comment