Gold ETFs are exchange traded funds which are backed by gold. These are an alternative to actually owning gold bullion. Many investors view ETFs as a trading tool and therefore not ideal for individual investors. Although, I believe in purchasing physical Gold and do not buy Gold ETFs, you may benefit from taking a closer look at Gold ETFs.

Admittedly, there are some benefits and they are as follows: The fees are relatively low. It’s easy for the individual investor to become involved in. However, be aware of the some of the disadvantages. You can’t redeem Gold ETFs in gold you can only redeem them for cash. You need to be aware of the tax issues that are specifically related to Gold ETFs in your jurisdiction. Depending on the reasons that you are investing in Gold you should consider ETFs.

However, make sure you check out platforms for owning and storing physical such as BullionVault. In conclusion, if you are investing in gold as a hedge against inflation and to protect your wealth over the long term then you need to take a serious look at owning physical Gold Bullion. If you are looking at trading Gold actively then an ETF begs a closer look.