Reasons to Buy Physical Gold Instead of ETFs

Are you looking for something to invest your money in that will see great returns? Gold is a wise choice, as its value keeps increasing. One way to invest in gold is through Exchange-traded funds (ETFs). But for your best investment opportunity, investing in physical gold is better than ETFs.

What are ETFs?

Gold ETF

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Exchange-traded funds (ETFs) are investment companies that don’t sell individual shares directly to investors, but rather issue their shares in large blocks known as “creation units,” such as a unit of gold. After purchasing this creation unit, the investor splits it up and sells the individual sales on a secondary market, allowing other investors to purchase individual shares. These investors can then either sell their creation units to other sellers on the secondary market or sell the creation units back to the ETF. Depending on the amount of time it takes to make these trades, and how many units are being traded, ETF investments can fluctuate. They are not the best investment opportunity on the market today. A better option for investing in gold during such fluctuating times on the market is purchasing it directly.

Why Gold?

Why Gold

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As opposed to stocks, gold is something tangible that can be bought, sold, traded, or held onto, depending on the individual’s needs. If you have a lot of gold jewelry sitting around, for example, you can hold on to it for sentimental value, wear it, sell it, or hold on to it to sell in the future, when the rate of gold may increase. Additionally, you can have gold jewelry valued. If it pure or close to pure, it could be worth having it refined and turned into gold bars.
Unlike ETFs, holding on to your gold is not a risk. Even if you don’t sell it in the end, it’s still your jewelry to wear or pass on to others. Gold is also more likely to increase in value over time rather than decrease. Gold is also frequently in high demand, so there is little risk when investing in it.

Why Avoid Gold ETFs?

Avoid Gold ETF

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The fluctuating stock market is not the only reason to consider trading physical gold rather than gold ETFs. When investing in ETFs, there are other fees you have to pay, including taxes, management fees, sponsor fees, and marketing fees.

How to Determine the Price of Gold

Determine Gold Price

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If you’re considering selling your gold, you’ll want to know how much you can realistically sell it for. Gold may be a safe investment, but it does still fluctuate in price. To best determine how much to price your gold for before selling it, you’ll want to consult a gold price annual change chart. These charts tell you what the cost of gold was in several areas of the world over a period of several years. It will help you decide the best price to sell your gold for and the profits you can reasonably expect to receive.

Where to Sell Your Gold

Sell Gold

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Companies that advertise on TV may be a convenient way to sell your unwanted jewelry, but they may not be the best places to trade the gold you’ve been collecting for investments. Make sure you research several different companies before determining which one to sell your gold to when the time is right. Educate yourself, and do your shopping in person.

Investing in physical gold rather than ETFs can be a wise decision. Do your research, and make sure you get the most out of your investment.

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