Why Gold Still Matters in Modern Investment Portfolios
Gold has served as a store of value for thousands of years, maintaining its appeal even as investment landscapes transform. Despite the rise of cryptocurrencies and other alternative investments, gold continues to play a crucial role in modern portfolios as a hedge against inflation, currency devaluation, and economic uncertainty. During times of market volatility, gold often moves independently of stocks and bonds, providing valuable diversification when traditional assets falter.
Investors today have two primary options for adding gold to their portfolios: gold ETFs (Exchange-Traded Funds) and physical gold ownership. Each approach offers distinct advantages and limitations that can significantly impact your investment outcomes. The right choice depends on your specific investment goals, time horizon, and concerns about the broader financial system.
Whether you're looking to speculate on gold price movements or seeking long-term wealth preservation, understanding the fundamental differences between these two investment vehicles is essential. Let's explore how each option works, their comparative advantages, and which might best align with your financial objectives.
Gold ETFs: The Digital Approach to Precious Metals
Gold ETFs represent a modern, digital approach to precious metals investing that has revolutionized accessibility to this ancient asset class. These financial instruments trade on stock exchanges just like shares of companies, allowing investors to gain exposure to gold prices without the logistical challenges of physical ownership. With just a few clicks in your brokerage account, you can add gold to your portfolio—no vault required.
How Gold ETFs Work and What They Track
When you purchase shares of a gold ETF, you're buying units that represent a specific amount of gold held in secure vaults by the fund's custodian. The fund manager purchases physical gold bullion using investor capital, with each share typically representing a fraction of an ounce of gold. These shares are designed to closely track the spot price of gold, rising and falling in direct correlation with the market value of the precious metal.
Most gold ETFs are backed by allocated physical gold, meaning specific bars are identified and segregated for the fund. This provides a level of security that the ETF's shares represent actual gold rather than just paper promises. However, as an ETF investor, you never take possession of this gold, you simply own shares in the fund that holds it. This distinction creates both advantages and limitations compared to direct ownership.
Major Gold ETF Options for Investors
The gold ETF marketplace offers several well-established options with different characteristics and fee structures. The SPDR Gold Shares (GLD), launched in 2004, remains the largest gold-backed ETF with over $50 billion in assets under management. It tracks the price of gold bullion and holds physical gold in HSBC vaults in London. For cost-conscious investors, the iShares Gold Trust (IAU) offers a lower expense ratio of 0.25% compared to GLD's 0.40%, though it represents a smaller fraction of gold per share.
Beyond these giants, investors can choose from several alternatives including the Aberdeen Physical Gold Shares ETF (SGOL), which stores its gold in Swiss vaults, or the GraniteShares Gold Trust (BAR), which boasts one of the lowest expense ratios at just 0.17%. For those seeking additional features, the VanEck Merk Gold Trust (OUNZ) offers the unique option to convert shares into physical gold delivery, creating a hybrid between ETF convenience and physical ownership.
- SPDR Gold Shares (GLD) - The largest gold ETF with high liquidity but higher fees (0.40%)
- iShares Gold Trust (IAU) - Lower expense ratio (0.25%) with smaller gold representation per share
- Aberdeen Physical Gold Shares (SGOL) - Swiss vault storage with 0.17% expense ratio
- GraniteShares Gold Trust (BAR) - One of the lowest expense ratios at 0.17%
- VanEck Merk Gold Trust (OUNZ) - Unique redemption feature for physical gold delivery
Management Fees and Their Long-Term Impact
While gold ETFs offer convenience, their ongoing management fees create a subtle but significant drag on long-term performance. These annual expense ratios, typically ranging from 0.17% to 0.40%, continuously erode your gold position regardless of market performance. Over decades, this cost can substantially impact returns compared to physical gold, which has no recurring fees after purchase.
The compounding effect of these fees becomes more pronounced the longer you hold your investment. For example, a 0.40% annual fee on a gold position held for 30 years would reduce your total gold exposure by roughly 11.4% compared to owning physical gold directly. This consideration is particularly important for investors viewing gold as a long-term store of value rather than a short-term trading vehicle.
Physical Gold: Holding the Real Thing
Physical gold ownership represents the traditional approach to precious metals investing, offering direct possession of this time-tested store of value. When you purchase physical gold, you acquire a tangible asset that exists independently of financial systems and digital records. This direct ownership appeals particularly to investors concerned about systemic financial risks or those who value the psychological security of holding real assets.
The physical gold market provides various options to accommodate different investment objectives, from standardized bullion bars to collectible coins with historical significance. Each form comes with its own considerations regarding purity, premium over spot price, and potential for appreciation beyond the metal's intrinsic value.
Bullion, Coins, and Collectibles: Your Options
Physical gold investments come in several forms, each with distinct characteristics that affect liquidity, premium costs, and storage requirements. Gold bullion bars represent the most efficient way to own maximum gold content with minimal premium over spot price, typically available in sizes ranging from 1 gram to 400 ounces (the standard "Good Delivery" bar). Government-minted bullion coins like American Gold Eagles, Canadian Maple Leafs, and South African Krugerrands offer smaller, standardized units with higher recognition and liquidity, though they command premiums of 5-10% above spot price.
For those interested in additional potential upside, numismatic or collectible gold coins offer historical and rarity value beyond their gold content. These can include pre-1933 American gold coins, ancient gold coinage, or limited mintage modern issues. While these may appreciate independently of gold prices due to collector demand, they typically carry substantial premiums of 15-50% above their metal value and require specialized knowledge to invest successfully.
Common Physical Gold Investment Options
Bullion Bars: Lowest premium, highest gold content per dollar invested
Government Bullion Coins: Higher recognition, moderate premiums (5-10%)
Numismatic Coins: Collector value, highest premiums (15-50%+)
Fractional Gold: Smaller units, higher per-ounce premiums
Storage Solutions and Security Considerations
The responsibility of securing physical gold represents one of the most significant challenges of direct ownership. Home storage options range from concealed safes to dedicated security rooms, but all carry the risk of theft, loss, or damage. Many investors opt for third-party storage through specialized precious metals depositories like Brink's, Loomis, or Delaware Depository, which offer dedicated facilities with advanced security systems, regular audits, and insurance coverage.
Bank safe deposit boxes present another common solution, though they typically lack insurance for contents and may be inaccessible during banking holidays or financial crises—precisely when you might most need your gold. Private vault companies like Das Safe in Austria or Le Freeport in Singapore offer enhanced security and privacy, often with the ability to store gold outside your home country, but at premium costs that can significantly impact your overall investment returns.
Insurance Costs You Can't Ignore
Beyond storage expenses, insurance represents an often-overlooked cost of physical gold ownership. Standard homeowner's insurance policies typically offer very limited coverage for precious metals—often capped at just $1,000-$2,000. Securing adequate coverage through specialized riders or standalone precious metals insurance policies can add 0.5-1.5% annually to your ownership costs, depending on your storage solution and location.
These ongoing expenses create a drag on returns similar to ETF management fees, though with more variability based on your specific storage choices. For substantial gold holdings, the combined costs of secure storage and comprehensive insurance can exceed the expense ratios of even the pricier gold ETFs, making the cost advantage of physical ownership less clear-cut than many investors initially assume.
5 Clear Advantages of Gold ETFs
Gold ETFs have revolutionized precious metals investing by addressing many traditional barriers to gold ownership. Their structure offers several distinct advantages that make them particularly suitable for certain investor profiles and objectives. Understanding these benefits helps clarify whether the ETF approach aligns with your specific investment goals.
The primary strengths of gold ETFs center around convenience, accessibility, and reduced logistical concerns. For many modern investors, these factors outweigh the psychological benefits of holding physical gold, especially when considering relatively modest allocations to precious metals within a diversified portfolio.
1. Unmatched Liquidity and Easy Trading
Gold ETFs provide exceptional liquidity that physical gold simply cannot match. Major gold ETFs like GLD trade millions of shares daily with penny-wide bid-ask spreads, allowing investors to buy or sell instantly at prices that closely track gold's spot value. This trading efficiency means you can execute precisely timed entries and exits or rebalance your portfolio with minimal friction and market impact.
The ability to trade throughout market hours with transparent pricing eliminates the negotiation process and dealer markups associated with physical gold transactions. For investors who view gold as a tactical asset rather than permanent wealth insurance, this liquidity advantage becomes particularly valuable during periods of market volatility when rapid position adjustments may be necessary.
2. No Storage Worries or Theft Concerns
Perhaps the most compelling advantage of gold ETFs is the complete elimination of physical security concerns. By owning shares rather than metal, investors transfer all responsibility for gold storage, transportation, and security to the fund's custodian. This arrangement removes the risk of theft, loss, or damage that accompanies direct gold ownership, along with the psychological stress these possibilities can create.
The absence of storage requirements also means you'll never need to worry about secure home storage solutions, evaluating depository options, or arranging insurance coverage. For investors with limited secure storage space or those living in high-crime areas, this benefit alone can make ETFs the preferred choice regardless of other considerations.
3. Fractional Ownership Possibilities
Gold ETFs enable precise position sizing through fractional share ownership, allowing investors to allocate exact dollar amounts to gold exposure. Unlike physical gold, where purchases are constrained by available product sizes (typically 1 ounce coins or 1, 10, or 100 gram bars), ETF shares can be bought in any quantity your broker supports. This flexibility proves particularly valuable for systematic investment approaches like dollar-cost averaging or for maintaining specific portfolio allocation percentages.
The fractional ownership model also dramatically reduces the minimum investment threshold for gold exposure. While a single ounce of physical gold requires an investment of roughly $2,000 (plus premiums), many gold ETFs trade at share prices under $200, with some brokerages now offering fractional shares that further reduce the entry point. This accessibility democratizes gold investing, making it available to beginning investors with limited capital.
4. Lower Transaction Costs When Buying
Gold ETFs typically offer significantly lower transaction costs compared to physical gold purchases. While physical gold dealers charge premiums of 5-10% above spot price for common bullion products (and much higher for smaller units), ETF transactions incur only standard brokerage commissions—which have dropped to zero at many major brokerages. This cost efficiency means more of your investment dollars go toward actual gold exposure rather than transaction fees.
The transaction cost advantage becomes even more pronounced when considering eventual selling costs. Physical gold typically involves a bid-ask spread when selling back to dealers, who often pay 1-5% below spot price depending on product type and market conditions. ETF shares, by contrast, can be sold at market value with minimal spread, maximizing your returns when it's time to exit the position.
5. Simple Addition to Existing Brokerage Accounts
Gold ETFs integrate seamlessly with modern investment infrastructure, requiring no specialized knowledge or separate accounts to implement. You can purchase gold ETF shares through the same brokerage platform you use for stocks and bonds, view your gold position alongside other investments, and receive consolidated tax reporting. This integration simplifies portfolio management and performance tracking compared to the separate systems required for physical gold holdings.
The administrative simplicity extends to estate planning as well. Gold ETF shares transfer to heirs through standard brokerage account beneficiary designations, while physical gold requires specific provisions in wills, detailed inventory documentation, and sometimes complicated physical transfer arrangements. For investors who value streamlined wealth management, this operational efficiency represents a significant advantage.
5 Major Benefits of Physical Gold Ownership
Despite the convenience of ETFs, physical gold ownership offers distinct advantages that digital alternatives simply cannot replicate. These benefits speak directly to the historical role gold has played as a store of value and financial insurance policy during times of severe economic stress. For investors concerned about systemic financial risks, these advantages often outweigh the logistical challenges of direct ownership.
1. Complete Removal of Counterparty Risk
Physical gold's primary advantage is the elimination of counterparty risk—the possibility that the entity responsible for your investment might default on their obligations. Unlike gold ETFs, which depend on the continued operation of fund managers, custodians, and the broader financial system, physical gold has intrinsic value independent of any third party's financial health. This characteristic becomes particularly valuable during financial crises when institutional stability may be questioned.
Physical gold in your direct possession remains valuable regardless of what happens to banks, brokerages, or ETF providers. This independence from the financial system provides true wealth insurance that paper or digital gold alternatives cannot match, especially in worst-case economic scenarios where the very infrastructure supporting these alternatives might be compromised.
2. Privacy in Ownership
Physical gold offers a level of privacy that's impossible with ETF investments, which create digital records of ownership. When purchased through private dealers in quantities below reporting thresholds (currently $10,000 in the U.S.), physical gold can be acquired with minimal documentation. This privacy appeals to investors concerned about potential future government interventions in gold markets or those who simply prefer confidentiality in their financial affairs.
The private nature of physical gold ownership extends to international mobility as well. Unlike financial assets tied to specific jurisdictions and reporting systems, physical gold can be transported across borders (subject to declaration requirements) or stored in private vault facilities worldwide. This flexibility provides options for geographic diversification that ETFs cannot offer.
3. Access During Financial System Disruptions
Physical gold remains accessible even during periods when electronic trading systems or banking infrastructure may be compromised. Historical financial crises have occasionally involved bank holidays, stock market closures, or electronic system failures that temporarily restrict access to financial assets. During such disruptions, physical gold in your possession remains both valuable and usable, providing liquidity when other assets may be temporarily frozen.
This accessibility advantage extends to scenarios involving power outages, internet disruptions, or cybersecurity incidents that might impact electronic trading platforms. While such events are rare, the insurance value of physical access becomes significant for investors specifically allocating to gold as protection against systemic risks rather than merely for portfolio diversification.
4. Potential Premium Values for Certain Forms
Physical gold offers potential value appreciation beyond the metal's spot price, particularly for rare or collectible coins. Numismatic premiums can significantly outpace gold price increases during periods of heightened collector interest or when specific coins become recognized for their historical significance or rarity. This additional value dimension is entirely absent from gold ETFs, which track only the commodity price of gold.
Even standard bullion products can develop premium value under certain market conditions. During periods of high physical demand or supply chain disruptions, premiums on common gold coins and bars have occasionally spiked to 10-15% above spot price. Physical gold owners benefit from these premium increases, while ETF holders remain tied solely to the underlying metal price.
5. Tangible Asset You Can See and Touch
The psychological benefit of holding physical gold shouldn't be underestimated. There's a profound confidence that comes from possessing real, tangible wealth rather than electronic entries or paper claims. This tactile connection to your investment provides a level of assurance that many investors find valuable, particularly during periods of financial uncertainty when trust in institutions may waver.
Beyond the emotional aspect, physical examination allows direct verification of authenticity and quality, eliminating concerns about the practices of distant custodians or the paper trails of allocation systems. For investors who fundamentally value the concept of "if you can't hold it, you don't own it," this direct relationship with their wealth represents gold ownership in its purest form.
Tax Implications That Affect Your Returns
The tax treatment of gold investments varies significantly between physical holdings and ETFs, creating meaningful differences in after-tax returns. Understanding these distinctions is crucial for optimizing your investment strategy, particularly for taxable accounts or substantial allocations to precious metals.
How the IRS Views Gold ETFs vs. Physical Gold
The IRS classifies physical gold as a "collectible" for tax purposes, regardless of whether you purchase bullion bars, bullion coins, or numismatic items. This classification subjects long-term gains on physical gold to a maximum tax rate of 28%—significantly higher than the 15% or 20% long-term capital gains rates applied to most financial investments. This tax disadvantage creates a substantial headwind for physical gold compared to other long-term investment options.
Gold ETFs face a more complex tax situation. Some gold ETFs, including market leaders like GLD and IAU, are structured as grantor trusts and receive the same "collectible" tax treatment as physical gold. However, certain ETFs structured as Regulated Investment Companies (RICs) or Exchange-Traded Notes (ETNs) may qualify for standard long-term capital gains treatment, potentially saving investors up to 13 percentage points in tax liability on profits.
Capital Gains Considerations
Beyond maximum tax rates, the mechanics of calculating and reporting gains differ between these investment vehicles. ETF transactions generate automatic tax reporting through 1099 forms, simplifying compliance and record-keeping. Physical gold sales, particularly of items held for many years, may require extensive documentation to establish cost basis and holding periods, creating administrative challenges that can lead to tax calculation errors or disputes.
Strategic tax planning opportunities also differ between these options. ETF positions allow for tax-loss harvesting through wash sale strategies involving similar but not identical funds. Physical gold, particularly numismatic items, offers potential for like-kind exchanges in certain situations, though recent tax law changes have limited this strategy. These nuanced differences in tax treatment should factor into your investment approach, especially for larger allocations.
Which Option Fits Your Investment Goals?
The choice between gold ETFs and physical gold ultimately depends on your specific investment objectives, time horizon, and concerns about the broader financial system. Each option excels in different scenarios and serves different purposes within a comprehensive wealth strategy.
Short-Term Traders: Why ETFs Make More Sense
For investors focused on short-term price movements or tactical asset allocation, gold ETFs clearly outperform physical ownership. The ability to execute immediate trades at transparent prices with minimal spread makes ETFs the superior vehicle for capturing shorter-term gold price fluctuations. This advantage becomes particularly significant during volatile market periods when rapid position adjustments may be necessary to capitalize on trading opportunities or implement risk management strategies.
ETFs also eliminate the logistical delays associated with physical transactions. While acquiring or liquidating physical gold can take days or weeks between order placement, settlement, shipping, and verification, ETF positions can be established or unwound within seconds. This operational efficiency proves crucial for investors using gold as a tactical hedge against specific market conditions or economic developments that may evolve rapidly.
Long-Term Wealth Preservation Strategies
Investors primarily concerned with long-term wealth preservation and protection against systemic financial risks often find physical gold more aligned with their objectives. The complete elimination of counterparty risk and independence from financial infrastructure provides insurance against worst-case scenarios that represent the very reasons many long-term investors allocate to gold in the first place.
The psychological security of direct ownership also supports the discipline required for truly long-term holding periods. Physical gold's tangible nature and the effort required to liquidate it creates natural resistance to impulsive selling during temporary market fluctuations. This behavioral barrier helps investors maintain their strategic allocation through market cycles, potentially improving long-term results compared to more easily traded ETF shares.
Creating a Balanced Approach with Both Options
Many sophisticated investors implement a hybrid strategy that leverages the strengths of both approaches while mitigating their respective weaknesses. A core position in physical gold (typically 50-70% of total gold allocation) provides fundamental wealth insurance and systemic risk protection, while a complementary ETF position offers liquidity for tactical adjustments and simplified portfolio rebalancing. This balanced approach delivers comprehensive gold exposure while accommodating both strategic and tactical investment considerations.
Real Costs of Gold Ownership Compared
The true cost of gold ownership extends far beyond the initial purchase price, with significant differences between physical and ETF options that compound over time. Understanding the complete cost structure of each approach is essential for accurately comparing their long-term efficiency and selecting the option that maximizes your after-cost returns.
The True Price of Physical Gold Beyond Spot Value
Physical gold ownership involves multiple cost layers that significantly impact your real returns. Initial purchase premiums typically range from 3-5% for large bullion bars to 5-10% for government-minted coins, and potentially 15-50%+ for numismatic items. Secure storage costs add another 0.5-1.5% annually, whether through home security systems, safe deposit boxes, or commercial vault services. Insurance expenses contribute an additional 0.2-1.0% annually depending on storage solution and coverage level, while potential assay costs when selling can subtract another 0.5-1.0% from final proceeds.
These cumulative costs create a substantial performance drag that's often underestimated by physical gold advocates. For a typical investor paying 7% initial premium, 0.75% annual storage, and 0.5% annual insurance, the 10-year cost impact approaches 15% of investment value—significantly exceeding the cumulative expense ratio of most gold ETFs over the same period. However, these costs must be weighed against the unique benefits physical ownership provides, particularly regarding counterparty risk elimination.
Hidden ETF Expenses That Add Up
While gold ETF costs appear straightforward through their published expense ratios, several additional factors affect their true economic impact. Beyond annual management fees (typically 0.17-0.40%), investors face trading costs including bid-ask spreads (usually 0.01-0.05% for major ETFs) and potential brokerage commissions depending on your platform. Tracking error—the difference between the ETF's performance and actual gold prices—creates another subtle cost factor, with most funds slightly underperforming their benchmark over time due to operational friction.
Tax efficiency represents another hidden cost dimension for ETFs structured as grantor trusts. These vehicles generate phantom income distributions that create tax liability even in years when you don't sell shares, potentially reducing after-tax returns compared to physical gold, which generates no taxable events until sold. This combination of visible and invisible costs requires careful analysis when comparing ETFs to physical ownership, particularly for investments intended to be held for multiple decades.
Smart Gold Investment Strategies for Today's Economy
Today's economic landscape of persistent inflation concerns, geopolitical tensions, and unprecedented monetary policy experiments creates a compelling case for strategic gold allocation. Rather than viewing gold ETFs and physical ownership as competing alternatives, consider how they might work together within a comprehensive precious metals strategy. Many financial advisors now recommend a 5-15% portfolio allocation to gold as inflation protection and volatility dampening, with the specific implementation tailored to individual risk profiles and objectives. For optimal results, consider dollar-cost averaging into your chosen gold vehicles rather than making large lump-sum purchases, allowing you to smooth out the impact of gold's natural price volatility while building positions at a measured pace aligned with your broader financial plan.
Frequently Asked Questions
Below are answers to the most common questions investors have when comparing gold ETFs to physical gold investments. These insights address practical considerations that often arise during the decision-making process.
Are gold ETFs backed by actual physical gold?
Most major gold ETFs are indeed backed by allocated physical gold stored in secure vaults. For example, SPDR Gold Shares (GLD) holds gold bars in HSBC's London vaults, with specific bars allocated to the trust and regularly audited by independent inspectors. Each share represents fractional ownership of this physical gold, though shareholders have no direct claim on specific bars.
However, not all gold-related ETFs use this direct physical backing model. Some synthetic ETFs use derivatives or futures contracts rather than physical gold to track gold prices. Others focus on gold mining companies rather than the metal itself. Always read the prospectus carefully to understand exactly what assets back your investment and how directly it relates to physical gold.
It's worth noting that even physically-backed ETFs typically include provisions allowing for gold leasing or other financial arrangements that could theoretically introduce additional counterparty exposure. While these practices are generally limited by the fund's governing documents, they represent another distinction from direct physical ownership.
What's the minimum investment needed for gold ETFs versus physical gold?
Gold ETFs offer significantly lower entry points than physical gold. With major ETFs like IAU trading around $40 per share and many brokerages now offering fractional shares, you can begin investing with as little as $1-$20. Physical gold typically requires a minimum investment of $150-$200 for the smallest commonly available products (1/10 oz gold coins or 1-gram bars), with much higher premiums per ounce at these smaller sizes, making them cost-inefficient for serious investing.
How do I sell physical gold if I need quick cash?
Selling physical gold typically involves taking your items to a local coin shop or precious metals dealer, shipping to a national dealer, or using online marketplace platforms that connect buyers and sellers. The process usually takes several days to complete between finding a buyer, negotiating price, arranging transportation, verification of authenticity, and final payment.
For faster liquidation in urgent situations, pawn shops offer immediate cash but typically pay significantly below market value—often 50-70% of the metal's worth. Some established dealers offer "buy-back guarantees" on their products that can streamline the selling process, though usually with predetermined pricing formulas that may not reflect full market value.
Can I hold gold in my retirement account?
Both gold ETFs and physical gold can be held in retirement accounts, but through different mechanisms and with varying limitations. Gold ETFs are eligible for any standard IRA, 401(k), or other retirement account that permits ETF investments, making them the simplest option for retirement gold exposure. Physical gold requires a specialized Self-Directed IRA with a custodian approved to handle physical precious metals, plus a depository relationship for secure storage—both services typically involve higher fees than standard retirement accounts.
What happens to my gold ETF if the issuing company goes bankrupt?
Gold ETF shares represent ownership in a trust that holds segregated, allocated gold—assets that are not considered part of the sponsoring company's balance sheet. If the ETF provider or fund sponsor were to file for bankruptcy, the underlying gold would not be considered part of their assets available to creditors. Instead, the trust would likely be liquidated, with proceeds distributed to shareholders, or transferred to a new sponsor to maintain operations.
This protection stems from the legal structure of most gold ETFs as separate trusts with independent custodians. However, operational disruptions could temporarily affect share trading or redemptions during such a transition period. This represents a key difference from bank or brokerage failures, where customer assets might be frozen for extended periods during resolution processes.
While this risk is theoretically minimal with established providers, it represents one of the systemic vulnerabilities that advocates of physical gold often cite as justification for direct ownership. For investors particularly concerned about financial system resilience, this consideration might tip the scales toward at least some allocation to physical gold despite its higher carrying costs.
Both gold ETFs and physical gold offer valuable benefits for modern investors seeking precious metals exposure. By understanding the distinct advantages, limitations, and cost structures of each approach, you can craft a gold investment strategy that aligns perfectly with your financial goals and risk concerns. SmartAsset offers additional resources to help you navigate these complex investment decisions and build a resilient portfolio for today's challenging economic environment.
Investors often face the dilemma of choosing between gold ETFs and physical gold. Each option has its own set of advantages and disadvantages. Gold ETFs offer the convenience of trading on the stock exchange and are generally more liquid, while physical gold provides the tangible asset that some investors prefer. To make an informed decision, it's crucial to understand the pros and cons of gold ETFs and physical gold.
