What You Need To Know About Gold ETF

Since the economy began to take a downturn, it’s become commonplace to see signs saying, “WE BUY GOLD.” It’s no big secret that people are investing in gold as a way of protecting their assets against the dollar. The stores and services that are buying physical gold are investing their money in the physical product.

Gold ETF or Physical Gold?

But buying or selling physical gold is only one way of profiting from ever increasing value of gold. Did you know that there’s another way to invest that uses gold as a measure? Gold Exchange Traded Funds (Gold ETF’s, or GETF’s) are traded on all major stock exchange systems, and continue to rise in price at the same rate as gold rises. The major difference is that buyers of Gold ETF do not have to worry about where to store the gold. However, if you like the idea to be able to redeem your profits in physical gold, some ETFs, such as ZKB Gold ETF, let you do that. But that’s not usual, and typically the businesses in charge of the fund purchase massive quantities of gold, and sell shares of the gold product in ‘baskets’.

It’s always about leveraging risks and benefits. Frankly, when it comes to investing into Gold ETF, the leverage is definitely on the side of the benefits.

The perks are many, and the problems are few. Many people, including many financial advisers, will push for stocks which deal with businesses. After the collapse of the real estate market, which created a domino effect for many markets and businesses, the problem with investing in businesses became brutally obvious. Why bet on something that will likely deflate in value? And even if you do pick the right stock, the constant worry about what the next day on the market is going to bring can make even the toughest investors break down.

Gold ETF is an excellent and inexpensive way to break into gold investing.

Your Golden Nest Egg

Clearly, gold is one of the best investments that a person can make, as it has been steadily increasing its value over the years. It is a universal currency, and will retain its high value even if the Dollar, the Euro or the Yen crashes. There is no country in the world that doesn’t put a very high value on this precious metal.

The logistic benefits to buying Gold ETF instead of physical gold are multiple. Unlike attempting to invest in the physical material of gold, investing in a Gold ETF doesn’t require you to buy a lot of gold. It also doesn’t require you to store it. You won’t have to pay for shipping and handling, either. You won’t lose the GETF’s, either, especially if traded electronically. Therefore, you won’t likely have to worry about theft of your gold, either. Can you see the benefits yet?

Taxes

When it comes to taxes, Gold ETF’s are ‘golden‘. Uncle Sam still wants you to pay capital gain taxes when you profit from a sale of an GETF, however, the tax is delayed and is only paid when you sell the entire GETF, not when you are holding it.

Little Money – No Problem

But the best perk for many investors, especially those who do not have much money to invest, is the price of GETF’s. Gold funds are affordable. Instead of having to buy a minimum size of gold, buying gold funds allows the buyer to buy small amounts, and slowly accumulate ounces, or even pounds of the material.

But even if your budget is very small, there are options like Double Gold ETF, which basically doubles your investment (assuming the price of gold will go up). However, this type of ETFs are bit of a gamble and inexperienced investors should stay away from them.

If you are interested in making some major investment into Gold ETF’s, it’s important to know the big Gold ETF’s, as well as the major market in the United States. The 4 major players in GETF’s are: Market Vectors Gold Miners fund, ProShares Ultra Gold, ZKB Gold ETF, and the SPDR Gold Trust.

Of course, returns per share vary with each different fund, so it’s still important to know how much bang you’re getting for your buck. But whatever GETF you choose, the good news about GETF’s is that many, if not most, of them are available for purchase on the AMEX.

Are You Ready?

No one knows what the future holds. It’s always about leveraging risks and benefits. Frankly, when it comes to investing into Gold ETF, the leverage is definitely on the side of the benefits. The question is – are you ready to take advantage of it?

ZKB Gold ETF – The Right Choice For Smart Investor

When it comes to investing in gold, there are two major groups of investors:
1. Those who only invest in physical gold
2. Those who only invest in Gold ETF’s

But with ZKB Gold ETF you can get the best from the both worlds.

How Is ZKB Gold ETF Different

ZKB ETF is different from most other ETF’s in that it is only 1 out of two Gold ETF’s in the world that allows redemption in gold (the othrer one is Julius Baer). Although the payment in kind in gold only applies to standard gold bars of 12.5 kg with 995/1000 (or more) traded purity, the option to be able to actually hold physical gold is a major advantage zkb ETF has over other ETF’s, as many investors consider the ability to own physical gold to be a very important aspect of gold investing.

Even if you don’t mind standard ETF’s and consider yourself more aggressive investor, the peace of mind that investing into ZKB ETF gives is a welcome change in today’s markets.

The credibility, security and transparency ZKB ETF offers is hard to find these days, and that means, that you can sleep peacefully at night, while your Gold ETF is truly working for you, and not for some shady organization.

What About Other Gold ETFs

Consider this – most large banks and Wall Street institutions and forms have their hands in today’s economic turnmoil and quite well-deserved bad reputation. The same people and companies who are responsible for creating subprime CDO’s, credit default swap markets and shortselling anything and everything in enormous quantities (including gold and silver) – the same people are very much involved in today’s gold markets.

ZKB Gold ETF allows redemption in gold.

Location, Storage, And Other Factors

This certainly is a risk factor to consider. However, ZKB Gold ETF makes this risk factor dissapear. Being located in Switzerland, and ONLY investing in physical gold makes the chances of trying to game the system very low.

Most ETF’s invest heavily into securities and stocks, making them much more valnerable to market upside-downs. As mentioned before, ZKB Gold ETF strictly invests ONLY in physical gold, and to add even more credibility and security for each investor, all gold is stored in their own vaults.

The same cannot be said about most other ETF’s who store the gold either in allocated accounts or the gold is held in London vaults – without you ever being able to see it or touch it.

Accountability = Transparency = Security For Your Investment

This lack of accountability even more increases chances of shortselling, which in fact occured with millions of ETF’s shares. What that means is simple – there are millions of shares that have no physical gold backing them in the vaults of ETF custodian.

That is not the case with ZKB Gold ETF, as it is backed by almost 3 million ounces of physical gold and is regulary audited by Swizz officials.

Bottom line is, if you want to invest in gold – and you definitely should – ZKB Gold ETF is probably one of the safest and easiest ways to go. The credibility, security and transparency ZKB ETF offers is hard to find these days, and that means, that you can sleep peacefully at night, while your Gold ETF is truly working for you, and not for some shady organization.

Double Gold ETF – Sound Investment Or A Gamble?

For those who are new to trading, and want to invest in something that is solid and at a record high, investing in Gold ETF is a smart way to go. But it is a human nature trying to maximize your investment as much as possible. Obviously, the more risk you take, the more you can make. Or lose. For those Gold ETF investors who are not fainthearted, Double Gold ETF is definitely worth looking into.

How Does It Work

Double Gold ETF’s returns are approximately double the change of the price of gold. So, if the price of gold increases 10%, the double gold ETF’s price will increase 20%. Sounds like a no-brainer, doesn’t it. But here comes the big BUT – if the price of gold decreases, the same rule applies to decrease as well. If the price of gold drops 10%, the price of the double gold ETF will drop 20%. Scared yet? This double-edged sword makes double gold ETF great for two kinds of investors.

No matter what your belief and strategy though, Double Gold ETF’s are recommended for experienced investors, who are able to absorb potential loses. This really is “double or nothing” type of investment.

Long Term vs Short Term

If you are a long-term investor who believes that gold will continue to rise in price (or at least stay stable), investing in long term Double Gold ETF’s is a way to go. If you are a short-term investor looking for Short Gold ETF, your options are bit more limited, but there are Double Gold ETF’s that move the opposite direction from the price of gold. So if you believe the price will go down, your yield will double.

With Double Gold ETF you can see your investment double in no time. Or lose your shirt...

Is It For You?

No matter what your belief and strategy though, Double Gold ETF’s are recommended for experienced investors, who are able to absorb potential loses. This really is “double or nothing” type of investment, so if you are looking for a secure investment, regular Gold ETF’s – especially ones that offer redemption in physical gold, such as ZKB Gold ETF – will serve you best.

If you set your mind on Double Gold ETF’s, words of advice are plentiful. It’s always important to invest with a plan; currently the long-term investments in double gold ETF’s are probably the wisest. If you do invest, and notice that the price in gold has dropped – and it will fluctuate – don’t panic! It is very important to be able to waiting it out and let the market stabilize.

Where To Invest

Probably the biggest name in Double Gold ETF’s for long term investment is ProShares Ultra Gold ETF. If you want to short on gold, then ProShares Ultra Short Gold ETF is a great ETF to invest into. They are both traded on the NYSE.

No doubt, Double Gold ETF is a gamble, but so is investing in general. Except you have more to lose now. But also more to win. So stay cool, do your homework and avoid making rash decisions. If you can’t manage the pressure of every day market fluctuation, stay away from the double ETF’s.