Precious Metals: Why are gold and silver ETF investments so popular?

Why are gold and silver ETF investments so popular?

Investments based on precious metals have gained a tremendous amount of popularity over the last decade. Among these investments are gold and silver exchange-traded funds, also known as ETFs. Why are gold and silver ETFs so popular these days, and could this specific type of precious metal investment vehicle meet your needs?

Convenience

One of the benefits of choosing an ETF instead of physical gold or silver is the fact that you don’t have to worry about storing metals in your home or at the bank. While some investors prefer to keep their gold and silver close at hand, others are uncomfortable holding such valuable assets privately. If you want to invest in precious metals but you don’t want to buy a safe or lease a bank deposit box then it might be wise to consider an ETF investment. There are multiple options from which to choose and ETFs trade on the same exchanges as stocks and mutual funds. It’s fast and easy to buy and sell precious metal ETFs, and you’ll never have to think about physical storage of gold and silver.

Low Buy-In

Many precious metal dealers have high investment minimums, but not all investors have $5,000 or more to dedicate to a single investment. On the other hand, precious metal dealers that don’t have high minimums often charge more in terms of commissions, meaning you could end up with less than you truly deserve. In such circumstances, gold and silver ETFs can be invaluable because you can purchase $100 worth of ETFs at the same rate you would be charged if you had $100,000 to spend. The low buy-in threshold of ETFs makes them attractive to investors who want to put in a little bit of money at a time and/or who may be on a fixed income.

Profitability Potential

While it’s common knowledge among serious investors that no investment is “guaranteed” there is good reason to believe that gold and silver ETFs will be profitable over the next few years. After all, the U.S. national debt is rising with inflation, and each day more investors diversify their portfolios by adding precious metals to their holdings. The gold spot price has risen from $252 per ounce in 2001 to over $1,340 per ounce as of August 2016, and many precious metal market analysts believe that the yellow metal could surpass the $2,000 per ounce mark within the next 3 to 5 years.

Conclusion

If you want to diversify your portfolio and give yourself a chance to earn a substantial profit then you owe it to yourself to give gold and silver ETFs a closer look. ETFs are convenient to buy and sell, and there are a wide variety of ETFs from which to choose. Whether you are familiar with the NASDAQ, the Dow Jones or the S&P 500, there are gold and silver exchange-traded funds available now that you could use to protect and grow your net worth.

 

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