Gold ETFs : Gold ETF is a new way of investing in gold. This is a shift from the traditional way of investing in gold. Exchange traded funds are those funds which are available in stock exchange for trading. People can buy and sell ETFs like other normal stock. in a similar way, Gold exchange traded funds can be bought and sold from the stock exchange.
Gold ETFs Vs. Physical Gold : It does not matter, what people suggest. If the suggestions suit our requirements then only we should opt for. So every individual has to first know the purpose of having gold. If the purpose of having gold is to use in jewellery form then there is no point in investing in ETFs but if the purpose is for the future investment then it makes sense to find the alternate ways of investing in gold. There are couple of options and people needs to find the one which suits them. Gold ETFs are one among them.
Why Gold ETFs : People can start investing in gold with small amounts. Since Gold ETFs are traded in the stock exchange, buy and sell price are transparent. There is no making charge or storage charge involved in Gold ETFs. Performance of different Gold ETFs can be compared before making an investment.
Impact of Indices on gold ETFs : BSE and NSE indices value have no direct impact on prices of Gold ETFs. Though gold ETFs are traded in stock exchange it does not mean that Sensex and Nifty values impact it. Gold ETFs are traded in stock exchange as stock but they are not stock. Stock, stock future and stock options on different than Gold ETFs. Gold price and buyers/sellers expectation decide the trading price of Gold ETFs.
How to Buy Gold ETFs : Once Gold ETFs are listed on stock exchange, this can be bought and sold from the stock exchange. People who are not having experience with the stock market then the first thing they need to do is to open one trading account with the broker. DMAT account will be opened during this process and this will facilitate the trading in Gold ETFs. Nowadays it is very easy and fast to open a brokerage account.
What Next : After opening of trading account very first thing is to understand the market. Understand the trading application provided by the broker. Find out the Gold ETFs symbol and then to decide which Gold ETFs one should buy. It is not easy to decide on which Gold ETFs are good to trade. I have already made many YouTube videos to educate the investor. Search the channel "DKM Deepak" on YouTube and there you will find many videos on Gold ETFs.