Types of Gold ETFs to Consider

On November 18, 2011, Spot gold edged up 0.2 percent to $1,723.94 an ounce by 0248 GMT according to a Reuters report entitled, ‘Gold steady; dollar, euro zone weigh’. Gold prices have exhibited a steady rise recently. The rate of growth has almost doubled in the last couple of years and has given way to various types of gold trading schemes. During the first week of November 2011, gold registered a hike, fuelled by fears of the looming debt crisis in the European continent. This trend continues despite the declaration made by Italian Prime Minister Silvio Berlusconi, to quit. As he paved the way for new leadership, this was perceived as a positive change for controlling the debt problems of the country.

In a recent statement issued by Berlusconi, he has confirmed that he would be leaving office once the parliament approved a budget law bearing crucial reforms. The reforms are immensely essential because, if Italy fails to fix its debt issues, the repercussions of the same would not remain restricted to Greece alone. The entire euro zone would have to bear the brunt of its inadequacies. Hence, damage control becomes inevitable. Till these debt problems are being managed, gold may be able to continue its unscathed upsurge. This is on account of the fact that investors have probably become more cautions concerning the efforts undertaken by Europe, to manage the spread of the debt crisis. Albeit, it still remains one of the best times to invest in gold. For those who are keen, Gold ETFs ( Exchange Traded Funda) can provide a good variety into an investment portfolio.

ETFs with Gold Products

Gold ETFs are highly preferred because they allow you to invest without the hassles of managing physical gold. You can also choose to monitor the performance of gold by adding actual gold products like bullion bars and coins. They can also be a part of a trust which can be used to cover up liabilities associated with the fund, as and when needed.

ETFs with Gold Futures

There are certain ETFs which would be constructed a little differently so that they can monitor gold performances. These include forwards, futures, and such derivatives for emulating a gold index.

ETFs of the Gold Industry

This is another specific type of ETF which is quite like the sector ETF. It consists of several companies from the gold industry. These are ETFs that track performances of companies which are heavily reliant on gold as their primary business.

ETFs for Multiple Metal Choices

Undoubtedly, gold can suggest some very handsome gains and it remains the single most popular precious metal, for trading and investment purposes. However, should you desire to create a portfolio which includes other precious metals like silver and platinum, you can opt for gold ETFs that have space for multiple metals. It would be a good way to diversify your investments and minimize risk.

Short ETFs

This one is more like an inverse ETF. It is constructed uniquely, for tracking the inverse performance of gold ETF index. Profits can be maximized as a result of a drop in the price index. This option would be ideal for those who are interested in investing in short gold but are unable to sell the ETF due to margin or account restrictions.

Those focused on investing in gold ETFs, will surely find one from the list that suits their investment goals, spending abilities and nature of their portfolio. Gold ETF investments are, and continue to remain ideal for sustained and long-term gains. However, physical gold is still touted by experts as a value addition to any portfolio.