ETF Securities GOLD ETF (ASX:GOLD)
The ETFS GOLD ETF provides investors with access to the precious metal of gold, by seeking to achieve a return equivalent to the movements in the gold spot price, before fees and expenses.
What does the GOLD invest in?
GOLD is backed by physical allocated gold held by JP Morgan at its London vault. Each physical bar is segregated, individually identified and allocated. GOLD is an exchange-traded commodity that can be created and redeemed on demand – in this way, an investment in GOLD provides investors with an entitlement to physical gold bars/bullion.
What do investors use GOLD for?
GOLD could be used by investors to diversify a portfolio with the precious metal commodity of gold which is typically uncorrelated with other asset classes. In this way, GOLD could be used as a hedge against risk – gold has been traditionally used as a store of value and a hedge against inflation, and is often seen as a ‘safe haven’ asset.
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