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ETF Over Physical Gold

Between physical gold & gold ETFs, the latter is a better proposition for many reasons…

I want to invest in gold. Is gold ETF better or physical gold? Which is the best gold ETF to invest in?
- Koushik Subramanyam

Investing in gold is overall a good portfolio hedging strategy as long as gold does not account for more than 5-10 per cent of your investment portfolio. Between physical gold and gold ETF, investing in gold ETF is a better proposition because these funds invest in physical gold making them the closest to investing in physical gold at no risk of holding physical gold.

You will need to have a demat account to invest in gold ETFs and there is little to choose between any of the gold ETFs, you can pick any fund that you wish to as long as you pick the fund with the lowest expense ratio.



This article was originally published on June 21, 2011.

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