HowToBuyGoldX.comThis site shows you how to buy gold and why now (2011) is the right time to buy gold.

Gold ETFs

Exchange Traded Funds (ETF)

Exchange traded funds represent assets owned by a company, but are sold as shares on the stock market. In other words, each share you purchase of an ETF represents ownership of a certain amount of the metal. The price or value of the ETF is based on a metal price.

Owning shares of ETFs can come without the risks and hassles associated with storing physical gold.

However, the challenges with ETF’s at the moment:

  • Unlike holding physical gold, shares in ETFs are subject to capital gains tax.
  • They’re also subject to a higher tax rate than ordinary stocks.
  • Some ETF’s are also under very little oversight. This means (if they’re not being honest) that they could be saying they have a physical amount of a metal without actually having that metal.

This guide is called “how to buy gold and silver”, not “what to buy in gold and silver”.

If you decide to invest in gold ETFs or stocks, it’s a good idea to increase your knowledge of what to invest in and what to stay away from.

Leave a comment

GoldMoney. Buy gold and silver

APMEX buying silver and gold