Benefits of Gold ETF - Efficient platform for small investors

Gold ETFs presents a whole new way of looking at Gold. Gold ETF’s are translucent instruments that provide efficient and effective platform for investors especially to small investors to mobilise and channelize their savings to invest in Gold. Gold is considered to be a classic asset and there are myriads of reasons why Gold ETFs are a must to be included in investment portfolios.

Gold ETF’s: A Smart Choice

Gold ETF’s are better than Traditional forms of Gold Investment. Some of the key benefits that arise out of investment in Gold ETFs are:

1. Diversification of Your Investment Portfolio: Gold ETFs are considered to be an efficient mechanism to diversify your existing portfolio.
2. Economical: Expenses incurred in sale and purchases of ETFs are comparatively lower than the cost which you incur in buying, selling, storing and insuring physical gold. Brokerage charges in ETFs are only 0.50% whereas in case of Coins and Bars it can be 10-20% while in jewellery it can 15 to 20% of the value. Therefore Investing in ETF’s is very cost effective and a boon for small and long time investors.
3. Maintenance of ETFs: For maintaining Gold ETFs all you need is a Demat Account with a plus point that the maintenance charges so involved in maintaining it requires are very nominal and that its fund management expenses are slightly above 1% only. Whereas in cases of physical gold, you need to pay from few hundreds to thousands for its insurance, locker charges, etc.
4. Safe and Secured Way: Keeping Physical Gold is very precarious because it is under constant threat of getting stolen, damaged, lost, etc.
5. Avenue for small Investors: There is a denomination attached to buying of Gold ETFs. Retail investors can only buy one gram of gold in one go therefore it becomes an attractive avenue for small investors. One can buy single unit every time and accumulate over time. One thing should be kept in mind that Gold ETFs are excellent Investment vehicles but they may not serve the purpose of accumulation of yellow metal in its physical form.
6. Forget Worries : No worries relating to adulteration or impurities.
7. Electronic Form: availability in Electronic form is an added advantage. Buying gold in electronic form enables investors a means to participate in the gold bullion market without taking a physical delivery of gold or to buy and sell them through trading it on a stock exchange
8. Real time Tracking : Investment value can be tracked in real time.
9. Ensures Liquidity: Gold ETFs provide liquidity as they are always extremely liquid.
10. Hedge against Inflation: Gold ETFs are excellent instruments that act like hedges against inflation.

Through ETFs you add a touch of gold to your investment portfolio; they act like a cushion to make your safe landing from crashing in the atmosphere of inflation. Besides gold are exclusive of any other financial assets so when financial machinery collapses gold serves as a safe haven. Isn’t it sounds too good to be true?