The Benefits of Investing in Gold ETFs

Investing in gold isn’t really at the forefront of most investors’ minds. Gold usually appeals to older investors who see this precious metal as a way to hedge an investment portfolio against inflation because gold historically rises in price when other investments tank. But the investing landscape has changed. If you search online, you’ll discover new ways you can invest in gold today.

Owning physical gold as an investment is no longer the only – or best – way to diversify your portfolio and keep your investments stable. Now, you can invest in gold online through a brokerage. And you can even get paid to do so. Search online, and you can find gold investment opportunities that offer sign-up bonuses.

Imagentle / Shutterstock

Is gold worth your investment? If you choose to invest in a gold ETF, you can reap all the benefits of traditional gold investments and even more. Here’s why a gold ETF can be a great option for seniors and younger investors.

Gold ETFs Offer Convenience and Much More

Gold ETFs are quite different from a traditional gold investment. They’re more similar to traditional stocks and mutual funds. Shares are traded on the New York Stock Exchange, and you can buy or sell them just like you would with any other stocks.

When you invest in a gold ETF, you’ll get a share. One share represents one-tenth of an ounce of gold. So, if you invest in a single share of gold and gold is trading at $1,300 per ounce, your gold ETF will trade for about $130 per share.

While gold ETFs are still relatively new, they’ve actually been around for over a decade now. SPDR Gold Shares, which trades a GLD, is one of the oldest – it’s been around since 2004. When you invest your money into a gold ETF, the fund itself invests in either bullion or shares of publicly traded companies that mine, refine, or produce gold. Some ETFs might invest in both.

The following are some of the unique benefits that can come with investing in gold ETFs.1

Gold ETFs Eliminate the Hassle of Physical Gold

Owning physical gold can certainly be a secure investment. Gold can be less prone to the dramatic ups and downs of the stock market. But actually buying and owning physical gold isn’t easy. You have to pay transaction fees, storage fees, and even insurance.

Putting your money in a gold ETF eliminates these costs and concerns. You won’t have to worry about physical gold; you’ll simply invest in ETF shares and let the fund take care of itself. Gold ETFs are more liquid and feature lower costs, giving you better flexibility and more convenience.

Investing in Gold ETFs Can Offer Low Risks and Appreciation

Gold ETFs do fluctuate faster than physical gold in value. They’re tied to the stock market, so they can see quicker increases – and quicker falls. This can make a gold ETF a riskier investment. However, investors shouldn’t worry. Gold ETFs tend to be safer and lower in risk, particularly if you choose to invest in options on gold futures or gold ETFs.

Additionally, there’s more potential waiting for your money in a gold ETF. Gold ETFs can appreciate. If your primary goal is to see your money grow, you’ll likely see results with a fund instead of physical gold.

Gold ETFs Are Taxed at a Lower Rate

Lastly, if you’re looking for an investment opportunity that doesn’t cost you a ton of your earnings in taxes, there’s another great benefit to gold ETFs.

While physical gold is considered collectible and all profits are taxed at a maximum rate of 28 percent, gold ETFs are different. Gold ETFs are taxed just like any other stocks and bonds. Your long-term capital gains will be taxed at a maximum of just 15 percent for most investors.2

Take Advantage of Signup Bonuses for Gold ETFs

If you’re ready to start putting money into gold ETFs, it’s a simple process. You can even use an online brokerage to buy and trade these investments.

Even better, there are brokerages that offer signup bonuses for new investors. If you want to invest in gold ETFs, you can search for signup bonuses to earn extra money on top of any gains you make on your investments.

Here are a few examples of the types of bonuses you could take advantage of.

Ally Invest: Up to $3,500

Ally Bank is offering a huge bonus of up to $3,500 for new investors who join Ally Invest. Open an Ally Invest Self-Directed account, which offers commission-free trading on U.S. stocks, ETFs, and options trading, and you’ll be eligible for this incredible bonus.

You can invest in a wide selection of different ETFs. Then, you can get that extra cash after funding your account.3

TD Ameritrade: Up to $600

TD Ameritrade is offering a tiered bonus of up to $600 that you can get by opening a brokerage account and making a deposit of a certain amount. You can get this bonus by opening a regular brokerage account or an IRA.

To get the bonus, you’ll need to fund it with:

Merrill Edge: Up to $600

If you open a new Merrill Edge Self-Directed brokerage account, you can get up to $600 as a signup bonus. With this account, you can get insights and ideas for your investments, take advantage of $0 stock, ETF, and option trades without any trade or balance minimums, and control all of your investments online with ease.

You will have to meet certain account funding requirements within 45 days of opening your account in order to get the signup bonus. These bonuses are:

Search Online to Find Best Broker for Gold ETFs

Search online to discover the latest signup bonuses available for online brokerage accounts. Make sure that the accounts you’re interested in offer ETFs so you can easily get started investing in gold right online.

With the right signup bonus, you could net extra cash that’ll help you grow your investments rapidly.