UK Gold ETF Funds Allow You to Invest Without Investing in Gold

By | July 27, 2018

Best Gold ETFs in UK: Invest Without Investing in Gold

UK Gold ETF Funds: Investment requires good planning on your part to lend good growth to your financial portfolio. You have traditional investment options such as stocks bonds, deposits as well alternative options such as real estate, hedge fund, gold, collectible etc. Here we will discuss on top 10 most popular ETFs. SPDR Gold Shares Trust, lyxoretf.co.uk etc. are the best gold ETF funds in UK. Investment involves certain risk and where you will invest is also decided by how much risk you want to take. Market fluctuation is also one of the important factors. When you make investment, the amount of money you want to invest and the financial goal you want to reach is also equally important too. Now-a-days many consider investment in Gold ETFs.

What is Gold ETF?

When you invest in Gold ETF, you don’t buy physical gold, but units that represent physical gold in paper or dematerialized form. One Gold ETF is equal to 1 gram of gold of high purity. Purchasing gold ETF means you are buying it in electronic form. You don’t have to buy physical gold and go through storage hassle. Gold ETFs are listed on stock exchange and can be traded like other scrip. They are one of the fastest growing segments of investment. You can buy and sell Gold ETF just like other stock. When you sell gold ETF, you get cash equivalent of physical gold. You trade in gold ETF through a DMAT account and a broker.

What are the benefits of Gold ETF?

It offers you huge tax advantage as Capital gain tax are deferred until you sale the ETF. There are other benefits too. Some of them are:

  • You can invest in as low as 1 gram unit.
  • There is no making charge which saves you substantial amount.
  • It is guaranteed for the purity as it is backed by physical gold of the said purity.
  • Investing in Gold ETF is very transparent and gold prices are real.
  • You don’t have to pay any wealth tax, sales tax or security transaction tax as it is treated as long term capital gain.
  • It can be listed and traded on stock exchange.
  • There is no fear of theft, hassle of keeping it safe as you don’t hold any physical gold.
  • There doesn’t exist entry and exit load on it.

What are Some Strategies for Trading Gold ETFs?

Gold ETF is a much secured investment in your portfolio. It reduces downside risk as it is a stable investment and its price tends to rise as the value of dollar drops.

You can use gold ETF as a hedge to reduce investment risk. It offers lot of trading opportunities. Gold related exchange traded fund consists of several different commodity exchange traded funds and can differ in how tracks the price of gold.

There are various gold ETFs, do some research work to track the performance and select the best gold ETF for your gold funds trading.

Invest in Gold ETF is a wise and safe investment option to grow your money!

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