GLD stocks are a great way to gain exposure to gold. A gold ETF like GLD is just one way to increase exposure to gold. Other methods include buying gold itself, using ingots, coins or jewelry, or buying it as a commodity that can be traded on commodity exchanges. On the other hand, investing in Gold backed IRA companies is another convenient and inexpensive way to gain exposure to gold. If you're looking for an inexpensive way to invest in the direction of the price of gold, GLD is ideal.
There are several ways to invest in gold. You can buy physical gold in the form of bars, coins, or even jewelry. You can also buy shares in a gold mining company or an exchange-traded fund (ETF) focused on gold. For some, buying gold exchange-traded funds (ETFs) may seem like a good deal.
You are a little exposed to the performance of gold, but without having to organize the receipt or storage of real gold. How? A gold ETF trades like a stock, generally tracks the price of gold and aims to replicate the performance of gold. SPDR Gold Trust (GLD), the largest and most popular gold ETF, is an investment fund that holds physical gold to support its shares. VelocityShares' long gold ETN (UGLD) aims to provide three times the return of the S&P GSCI Gold ER Index in a single day.
For example, let's say you want to buy shares in one of the world's largest and most popular gold ETFs, the SPDR Gold Trust (GLD).