The Gold Showdown: ETFs vs. Futures

Polski: Sztabka złota ważąca 12,5 kg. Własność Narodowego Banku Polskiego. (Photo credit: Wikipedia)

The Gold Showdown: ETFs Vs. Futures. In 2004, the first exchange-traded fund (ETF) specifically developed to track the price of gold was introduced in the United States. It was touted as an inexpensive alternative to owning physical gold or buying gold futures, and since its introduction ETFs have become a widely accepted alternative. Many investors look to certain gold-specific ETFs as a convenient and exciting way to participate in gold without having to be exposed to the risks of physically purchasing bullion or becoming savvy on how gold futures operate. However, what many investors fail to realize is that the price to trade ETFs that track gold may exceed their convenience, and that trading gold future contracts may be a better alternative under the right circumstances. In this article we’ll explore whether it’s better to invest in gold ETFs or to go with the more traditional gold futures. ... Continue to read.

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