gold index tracker fund???

HunterBurgan

Considering the aspect of this, but cant find enough information simplified!

The search engines reviews quote that it is like buying bonds on the stock market but no mention of the gold.

Infact I dont even understand how they hold your gold/ wealth and reinvest/ lend it on for a fee; if this is what they even do, like a bank should do!

So first off  dose a "gold index tracker fund" allow you to buy gold and hold it with the broker who makes a comission from lending your gold to a borrower and you get paid in turn out of that?

Thanks

Thrugelmir

ETF's are available that own physical gold. 

Linton

All that a gold index tracker fund does is to aim to keep its price matching the price of gold.  In principle there may be no real gold involved, the price being maintained through financial wizardry (synthetic replication).

The ETFs that hold real gold have it stored in large vaults (Google tells me these are mainly in London) where it will be held alongside gold owned by other people.  You would never get to see, feel, or touch it.

csgohan4

ETC for gold are what you need potentially

Weigh up the cons and pros for holding physical gold

masonic

HunterBurgan said:

Considering the aspect of this, but cant find enough information simplified!

The search engines reviews quote that it is like buying bonds on the stock market but no mention of the gold.

Infact I dont even understand how they hold your gold/ wealth and reinvest/ lend it on for a fee; if this is what they even do, like a bank should do!

So first off  dose a "gold index tracker fund" allow you to buy gold and hold it with the broker who makes a comission from lending your gold to a borrower and you get paid in turn out of that?

For the lending aspect of your query, the closest equivalent is an investment fund lending shares to short-sellers so that they can sell them in the market and hopefully buy them back at a lower price in the future. That's all very easy for a digital asset, but for a physically backed gold ETC they would need to hand over the physical gold, transport it to a buyer, and when they come to exit their position the borrower would need to do the reverse.

HunterBurgan

Linton said:

All that a gold index tracker fund does is to aim to keep its price matching the price of gold.  In principle there may be no real gold involved, the price being maintained through financial wizardry (synthetic replication).

The ETFs that hold real gold have it stored in large vaults (Google tells me these are mainly in London) where it will be held alongside gold owned by other people.  You would never get to see, feel, or touch it.

ETF, What dose the e stand for

Dose ETF store the gold? Do you actully purchase it from them while they stor it

HunterBurgan

csgohan4 said:

ETC for gold are what you need potentially

Weigh up the cons and pros for holding physical gold

What dose ETC stand for?

The pros and cons of storing the gold your self? Lets see I guess it getting stolen

What are the pros to it though? Dose the tracker fund charge you for storing it or do they pay you a very small amount for investing it?

MX5huggy

Exchange Traded Funds or Exchange Traded  Commodities. 

HunterBurgan

MX5huggy said:

Exchange Traded Funds or Exchange Traded  Commodities. 

Any recomendations to a repatible company please

HunterBurgan

Take a look at these 2 links that show its vale of the last year and the last 3 years

It dose not look at all that stable to me!

https://www.gold.co.uk/gold-price/gold-price-chart/

https://www.gold.co.uk/gold-price/3-year-gold-price/

eskbanker

HunterBurgan said:

Take a look at these 2 links that show its vale of the last year and the last 3 years

It dose not look at all that stable to me!

https://www.gold.co.uk/gold-price/gold-price-chart/

https://www.gold.co.uk/gold-price/3-year-gold-price/

Anyone buying gold while under the impression that its price would be stable has a serious due diligence shortfall!