Gold Exchange Traded Funds: A Perfect Substitute of Physical Gold
Keywords:
Gold bullion, Exchange Traded Funds, Gold Exchange traded fundsAbstract
Gold has its own importance from investors and cultural point of view. It stands as a sign of wealth and prosperity amongst individual and is popular among investors for building a strong portfolio. There are different ways to invest in gold viz. gold bullion bars, ornaments, gold coins, gold futures, gold ETFs etc. Gold ETFs are like owing virtual gold, which does away with the difficulties confronted while investing in physical gold. The present study aims to understand the advantages of investing in gold ETFs over physical gold and compare their returns and deviations of returns. For the purpose of the study the data was collected from secondary sources and was analysed using Ms-excel. Further hypothesis was tested using T-test and results were interpreted thereof. The study concluded that gold stands as one of the best diversifier and gold ETFs provides almost same returns as that of gold hence to avoid the difficulties conferred while in investing in physical gold one can switch to gold ETFs.
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