5 reasons why gold ETF is better than physical gold for uncertain times
Gold ETFs are an innovative investment vehicle that offers exposure to the yellow metal without the need to hold physical gold. They have gained immense popularity due to their flexibility, ease of trading, and cost-effectiveness. · Liquidity and Accessibility: Gold ETFs are traded on stock exchanges, making them highly liquid.
Investors can buy and sell units of ETF just like stocks, offering easy access to the gold market. · Transparency: One of the key advantages of gold ETFs is their pricing transparency. Investors can easily monitor the price of gold and consequently the performance of gold holdings.
· No Storage Hassles: Owning physical gold comes with storage and security concerns. Gold ETFs eliminate these worries as investors do not need to store the metal physically. Instead, units of gold ETF are held in a demat account, eliminating the fear of theft.
· Affordability: One unit of ICICI Prudential Gold ETF costs approximately Rs. 54. Given the lower cost of acquisition, gold becomes accessible to a broader range of investors, even those with a limited budget.
· Lower Other Costs: Buying physical gold can incur significant costs, including making charges, storage charges, dealer premiums etc. As compared to these, gold ETFs have much lower expense ratios. In conclusion, gold ETFs offer an attractive and accessible means of safeguarding one's wealth in the face of economic uncertainty.
Read more on livemint.com
