Q: I think this question has been asked. Instead of buying gold bullions, could you please recommend two or three etfs that are equivalent to buying bullions.
What are the differences, if any, between buying gold bullions and buying your recommended etfs?
What are your thoughts on buying gold now after the rally gold has already had so far?
Thank you,
What are the differences, if any, between buying gold bullions and buying your recommended etfs?
What are your thoughts on buying gold now after the rally gold has already had so far?
Thank you,
5i Research Answer:
The SPDR Gold Shares ETF (GLD) holds gold bullion, and it seeks to track the spot price of gold by physically holding gold in a vault. We also like PHYS and GLDM, but both have a smaller AUM and shorter history than GLD.
Buying physical gold bullion requires proper storage, handling, or some storage fees if held within a bank. Buying a gold ETF has advantages of lower carrying costs and they can be held in tax-advantaged accounts.
Gold largely moved sideways from 2011 to 2023, and has only recently broke out to new all-time highs. In declining interest rate environments, physical metals like gold and silver tend to perform well as real rates can turn negative, thus increasing the attractiveness of stores of wealth like gold.