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The Value of Owning Physical Gold Over Gold ETFs

Last updated 5 years ago

For those investing in gold for the first time, it can be difficult to understand how the process works and the best ways to ensure that the investment is a wise one. The process of buying gold can be carried out in one of two ways—either with an exchange of cash for physical gold or an exchange of cash for gold ETF’s. Here is a look at the advantages of owning physical gold over the latter option:

Fewer Risks When you purchase a share in a gold ETF, or exchange-traded fund, there’s no guarantee that the share will retain its value in the case of a major crisis. In 2011, a major commodity broker, MF Global, collapsed suddenly. This resulted in the freezing of buyers’ assets, and once they were made available, these assets were worth a fraction of their initial value. This unfortunate incident was a lesson to many that investing in gold is only truly safe when you have physical possession of the metal.

Peace of Mind and Reassurance There’s no comparison for the sense of security that you will feel when purchasing gold in its physical form over an ETF. No matter what happens in global financial markets, your physical asset will be safe in your possession. If there’s one thing the last several years of financial turmoil have taught us, it’s that a prudent investment strategy better ensures stability. 

Come speak with the professionals at Capital Gold Group to learn more about investing in gold. Our experts have years of experience helping investors diversify their portfolios. Call (800) 510-9594 or like us on Facebook to learn more about buying from us.

Disclaimer: The representatives at Capital Gold Group are not financial advisors and the information provided in this blog should not be considered financial advice. The past performance of gold investments is not indicative of potential future gains.


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