Possible Duplicate:
Pros & cons of buying gold directly vs. investing in a gold ETF like GLD, IAU, SGOL?

I’m a new player in this so I hope someone can offer me some suggestions.

I want to invest in gold, maybe buy a small lot of gold coins or bullion. But I’m also thinking of starting a portfolio with gold ETF.

Which would be a better option and why?

  • Since any answer i could provide would be non-exhaustive, the most i can contribute is en.wikipedia.org/wiki/Gold_exchange-traded_product, which is a very good compilation of exchange traded (paper) gold.
    – Waldfee
    Commented Dec 11, 2012 at 18:53
  • 3
    Please, don't invest in something just because you have a feeling (or your neighbor/uncle/buddy told you) that it's the next hot thing. It isn't
    – Lagerbaer
    Commented Dec 11, 2012 at 22:14
  • 1
    @Charlie - what reasons do you have for wishing to buy gold? And in what dollar amounts are you looking to invest? Your answers would impact the advice you'll get here. Commented Dec 12, 2012 at 4:16
  • Charlie, thanks for your edit - I've re-opened the question. Yet, we're still lacking your country and some idea about your investment goals. These will impact any answer. Thank you. Commented Dec 13, 2012 at 20:57
  • Without more detail, I agree this is now a duplicate. Commented Dec 14, 2012 at 12:41

1 Answer 1


Physical gold fees/risks: low liquidity, high transaction costs, storage costs, security risk

ETFs risks: futures basis, ETF solvency, ETF implied costs Gold Futures risks: basis, margin

Risks that apply to both physical/financial metal holdings: economic slowdowns, general market volatilities, opportunity costs, under performance against actual rate of inflation, and etc.

Not the answer you're looking for? Browse other questions tagged .