What is a gold ETF?


Quick Answer

Gold ETFs are exchange-traded mutual funds that track the price of gold by investing either in gold-producing companies or in physical gold bullion, explains Investopedia. Gold ETFs allow investors to take a position on the price of gold without the necessity of handling and storing physical gold.

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Full Answer

Gold ETFs have democratized gold investing, notes Commodity HQ. Because they trade just like stocks, gold ETFs give retail investors a level of access to gold markets that was once limited to futures traders. Gold is useful not only as a stand-alone investment but also as a hedge against other investments, particularly currency investments, notes Investopedia.

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