FAQ Help Center

This FAQ aims to shed light on the nuances of investing in gold in its many forms.

Gold has been a cherished asset for centuries, often sought after for its intrinsic value and historical significance in trade and finance.
Today, investing in gold isn’t just about owning physical bars or coins; the financial world offers various instruments such as derivatives and ETFs.

Gold is seen as a hedge against inflation, a safe-haven asset during times of economic instability, and a means to diversify an investment portfolio. Its value doesn’t correlate directly with stock markets, which can be beneficial during market downturns.

Physical gold involves owning tangible gold items, like bars or coins. Gold ETFs (Exchange Traded Funds), on the other hand, track the price of gold and give investors exposure without actually owning the physical metal. With ETFs, you buy shares of a fund that holds gold, whereas with physical gold, you have the actual metal in your possession or stored securely.

Gold derivatives are financial contracts that derive their value from the price of gold. Common examples include futures and options. Investors can use them to hedge, speculate on price movements, or gain exposure to the gold market without holding the physical commodity.

Yes. Storing physical gold safely can be challenging and potentially costly. Investors often use bank safe deposit boxes or professional bullion storage facilities. Some storage solutions may also offer insurance for your gold.

Taxation on gold investments varies by country. In many jurisdictions, capital gains on gold sales may be taxable. Gold ETFs and derivatives may also have different tax implications compared to physical gold. It’s essential to consult with a tax professional regarding your specific situation.

Purchase from reputable dealers who provide certificates of authenticity. Some gold bars also come with a unique serial number and an assay stamp, showing the purity of the gold.

Gold ETFs typically have management fees or expense ratios. These annual fees are a percentage of the fund’s average assets and cover the costs of managing the ETF. Always review the fund’s prospectus to understand the associated fees.

Gold ETFs and derivatives usually offer higher liquidity as they can be easily traded on stock exchanges during market hours. Physical gold, on the other hand, requires a buyer when you wish to sell, which might introduce some delays and additional costs.

Several factors influence gold prices, including global economic conditions, inflation rates, central bank activities, interest rates, geopolitical events, and demand and supply dynamics in the gold market.

Yes, in many cases, both physical gold and gold ETFs can be used as collateral for loans, though terms and conditions will vary by lender. It’s essential to check with specific financial institutions for their policies and requirements.

This FAQ provides general information about gold investments.
Before making any investment decisions, always consult with a financial advisor to assess your individual needs and circumstances.