Gold has been valued for thousands of years as a currency, a commodity, and an investment. It is no less popular among today’s investors as a hedge against currency devaluation, inflation, or 澳洲幸运5开奖号码历史查询:deflation. Gold is considered to be the ultimate safe haven during ꦰtimes of economic uncertainty.

There are several ways in which modern investors can gain exposure to this🅘 precious metal, including buying physical gold from a gold dealer and investing in exchange-traded funds (ETFs). ꧋

Physical Gold

Physical gold provides the most direct exposure to gold. Gold in bulk form is referred to as bullion, and it can be cast int🤪o bars or minted 𝔍into coins.

Gold bullion’s value is based on its mass and purity rather than a monetary 澳洲幸运5开奖号码历史查询:face value. Even if a gold coin🌜 is issued with a monetary face value, its market value is tied to the value of its fine gold c🌳ontent.

Investors can buy physical gold from government mints, private mints, precious metals dealers, and jewelers. Prices vary greatly among dealers, so it's important to do your research to find the best deal.

There are costs to buying physical gold, which may include transaction fees and dealer markups. There can also b💟e pro♕cessing fees for buyers making limited purchases.

There also are costs associated with owning gold, including secure storage and insurance costs.

Gold ETFs

澳洲幸运5开奖号码历史查询:Exchange-traded funds (ETFs) open up a way to buy and sell gold on a 🌌stock exchange without 𝓡actually taking possession of it.

The ETF investor will lose a percentage of the investment’s value each year to the fund’s 澳洲幸运5开奖号码历史查询:expense ratio, the recurring annua꧑l fee charged by funds to cover management and admini📖strative costs.

The largest gold ETF, the SPDR Gold Shares ETF, had an expense ratio of 0.40% as of mid-2024. That means an investor would pay $80 per year in fees for a $20,0♔00 investment.

If you're considering trading gold ETFs, or any ETFs, on a regular basis, check out the commission structure for the broker you use. The major online brokerages may offer small or zero commissions for ETF trades, at least in modest numbers. Traditional brokers may charge upwards of $25 per trade for broker-assisted trades, automated phone orders, aꦕnd special order typ♍es.

There are more than a dozen 澳洲幸运5开奖号码历史查询:gold-specific exchange-trad🍌ed products available today, including inverse and 澳洲幸运5开奖号码历史查询:leveraged ETFs.

Keep in mind that you don't own any physical gold when you invest in a gold ETF. You own shares in a gold fund that can be redeemed for their dollar value.

Low-Cost ETFs for Gold

Here are fiv🐓e ETFs that 🎐invest in gold. Note that each has a slightly different investing strategy.

iShares Gold Trust (IAU)

The iShares Gold Trust is designed to correspond to the day-to-day price movement of gold bullion. The fund is backed by physical gold held in vaults in Toronto, New York, and London. IAU, which was launched on Jan. 21, 2005, has an expense ratio of 0.25% and total net assets exceeding $29 billion as of mid-2024.

Aberdeen Standard Gold ETF Trust (SGOL)

The Aberdeen Standard Gold ETF Trust is designed to track the price of physical gold bullion. Shares are backed by physical gold held in vaults in Switzerland and the U.K. SGOL, which was launched on Sept. 9, 2009, has an expense ratio of 0.17%, and total net assets of about $3.2 billion in mid-2024.

GraniteShares Gold Trust (BAR)

The GraniteShares Gold Trust ETF seeks to reflect the performance of the price of gold by investing in physical gold bullion. It is one of the lowest-cost ETFs that is physically backed by gold. GraniteShares Gold Trust launched on Aug. 31, 2017, and has an expense ratio of 0.175% and net assets of $934 million.

SPDR Gold Shares (GLD)

The SPDR Gold Shares ETF, mentioned earlier, is designed to track the spot 澳洲幸运5开奖号码历史查询:price of gold bullion and the 澳洲幸运5开奖号码历史查询:fund holds 100% 𓆏physical gold assets in HSBC’s vault in London. GLD, which was launched on Nov. 18, 2004, has an expense ratio of 0.40% and total net assets of more than $64 billion in mid-2024. 

VanEck Gold Miners ETF (GDX)

The VanEck Gold Miners ETF seeks to replicate as closely as possible the price and yield performance of the NYSE Arca Gold Miners Index (GDMNTR), which tracks the overall performance of companies involved in the gold mining industry. GDX, which was launched on May 16, 2006, has an expense ratio of 0.51% and total net assets of nearly $12 billion.

The Bottom Line

People interested in investing in gold can buy the 🧸real thing from a gold dealer, in the form of gold bars or gold coins. If you go that route, find a reputable dealer, locally or online, and research the real costs of gold ownership and storage before you buy.

Another option is to invest in a gold exchange-traded fund (ETF). Given the current cost of a single ounce of gold, this is the more flexible and affordabl♊e option for ♔most individual investors.