Investing in Gold Stocks - Mutual Funds and ETF"s

When investing in gold stocks you can either entrust your money in gold mutual funds on in gold exchange trade funds, otherwise called ETF’s.

Mutual funds is best described as owning shares in companies involved with mining and refining gold deposits to make them available for use. Mined, refined, and purified gold can be applied to various industries such as electronics, computers, space voyages, medicine, dentistry, arts, jewelry, and in monetary coinage.

Exchange traded funds on the other hand may be a form of mutual funds. Although you do not own a direct asset to a gold company, funds you own which are traded over stock exchanges may be directly linked to mutual funds.

The notable difference between the two is that the latter involves physically available gold. These are often in the forms of bars or bullion of which. The standard for gold purity is at least 99.5%. Mass is represented in troy ounces but are often regarded only as ounce. An ounce is equivalent to 31.10 grams.

Exchange Trade Funds

There are various companies you can invest upon in the U.S. and worldwide. Some of which participate in local exchanges such as the New York Stock Exchange or NYSE Gold. Some locally available gold stocks are from the Claymore Gold Bullion ETF, Gold Bullion Securities, iShares Gold Trust, Julius Baer Physical Gold Fund, SPDR Gold Shares, Sprott Physical Gold Trust, and the ZKB Gold ETF.

Worldwide stocks you can be able to invest upon for gold include the Central Fund of Canada and Central Gold Trust and Precious Metals Bullion Trust of Canada, Dubai Gold Securities and NewGold, ETFS Physical Gold and ETFS Physical Swiss Gold, and the Goldist ETF of Istanbul.

Spread Betting

Like all other stocks, strategies can be utilized for best results. Spread betting is one. It can be compared to a race game where one places bets to more than one player to achieve chances of winning.

In relation to investing in gold stocks, spread betting lets you buy stocks in more than one source.

Another method which can be followed with gold stock investing is to purchase stocks in progressive stages. Begin with a minimal number of stocks. In this way potential losses will have little or no impact. Slowly move up by increasing your percentage of stocks.

SPDR Gold Funds

The Standard and Poor’s Depository Receipt or SPDR’s Gold Funds (GLD) is the world’s first gold ETF and now holds about 80% of gold stocks worldwide. Its four main stock exchanges include the United States’ NYSE: GLD, Japan’s TYO: 1326, Hong Kong’s HKEX: 2840, and Singapore’s SGX: GLD.

The SPDR Gold Trust physical gold is kept in its headquarters at London and is audited twice a year by a third party company.

The SPDR GLD is a reliable and trusted gold stock group and is preferred by many when investing in gold shares.

There are many reserves and companies you can choose when investing in gold stocks. You can invest through local groups or you can also invest in those which operate worldwide. You can browse over the internet and choose reliable websites that offer quality gold stock investments. Do not deal with websites that create some suspicions or doubts in your mind. When dealing with any gold purchase, you have to be very cautious in any sort of transaction so as not to put your money into waste. Gold is considered a high-quality investment which will never run out of value. Regardless of whether the US dollar fluctuates, gold remains to be equal to the value of your money. It serves as financial savings even in the midst of a crisis situation.

Source by Aaron Kutchinsky

Investing in Gold Stocks - Mutual Funds and ETF"s