GLD stocks are a great way to gain exposure to gold. A gold ETF like GLD is just one way to increase exposure to gold. Other methods include buying gold itself, using ingots, coins or jewelry, or buying it as a commodity that can be traded on commodity exchanges. Investors could use GLD to speculate on the price of gold, or they could consult a Gold IRA expert for advice on investing in gold. It's much easier to buy and sell ETF stocks than to buy and trade physical gold.
GLD stocks are much more accessible to most investors than gold futures contracts involve substantial leverage, which can amplify both gains and losses. On the one hand, the fund is convenient and inexpensive. If you're looking for an inexpensive way to invest in the direction of the price of gold, GLD is ideal. The iShares Gold Trust is almost identical to the SPDR Gold Shares.
That makes it another great way to invest directly in gold. It also has a lower spending ratio than its larger rival. GLD tracks the price of gold by holding gold bars in a trust in the form of 400-ounce London Gold Delivery ingots, deposited in an assigned account. If we look at both assets more closely, it's clear that gold ETFs and gold bars are very different investments.
Gold is a precious metal commodity and many investors want to keep physical gold as a protection against the general decline in economic conditions and against inflation, while some may use it as a method of diversifying portfolios. That makes it the best gold ETF for those who want to invest in mining companies as a way to play in the gold market. Investing in gold ETFs is a cost-effective and easy way to expose yourself to gold, and the SPDR Gold Shares (GLD) ETF is one of many ETFs that offer this exposure. Those investments and shareholder returns allow gold mining companies to potentially offer better total returns compared to gains in the price of gold.
SPDR Gold Trust (GLD), the largest and most popular gold ETF, is an investment fund that holds physical gold to support its shares. There are several ways to invest in gold, such as actually buying the physical commodity, buying shares in companies in the gold business, buying gold futures, or investing in gold exchange-traded funds (ETFs). The SPDR Gold MiniShares Trust is a lower cost product launched by the same investment managers as the SPDR Gold Shares ETF.
