The easiest way to invest in gold and silver is to buy one or more exchange-traded funds (ETFs). The key advantage is that they are extremely liquid and you can buy or sell them within your brokerage account. Of all the ways to invest in gold, the riskiest is to trade futures or options contracts, a form of speculative investment. Futures and options are derivatives, meaning that their value is based entirely on the price of an underlying asset.
The metals would be in the hands of an external depositary, not Morgan Stanley, although investors can accept physical delivery if they want to store them themselves. Due to the high price of gold bars, it is especially important to go to an accredited dealer and pay for the delivery with insurance or to fork out for storage in a large vault or safe. Throughout history, few investments have matched the popularity of gold as a hedge against almost any type of problem, from inflation to economic turmoil or exchange rate fluctuations and war. The most common gold coins weigh one or two ounces, although half-ounce and quarter-ounce coins are also available.
The VanEck Vectors Gold Miners (GDX) ETF, on the other hand, is a passively managed fund that tracks an underlying basket of stocks of gold mining and refining companies. You can also access the gold and silver price chart through UOB Personal Internet Banking or UOB Mighty anytime, anywhere. You can buy these gold items at the main branch of the UOB from 9.30 a.m. to 4.30 p.m., Monday to Friday, except holidays.
You can buy physical gold, such as gold bars and gold coins in gold bars, at gold retailers based on current exchange rates. These three options are the most common for retail investors, while more sophisticated investors may be inclined to implement investment strategies using gold futures options. For example, current UOB customers can purchase gold items online and pick them up in person at the main UOB branch. Investors and speculators were accumulating positions in gold to protect themselves from geopolitical risk, as the precious metal has long been considered a haven for volatility.
At the time of writing this article, DBS CIO believes that gold prices should continue their short-term upward trend, which reaffirms the importance of investing in the metal. Just remember that, like gold stocks, you don't buy gold, only paper that is theoretically backed by the debt or equity of mining companies or physical ingot futures and options contracts. iShares Gold Trust has one of the lowest spending ratios (0.25% per annum) and is the second largest gold ETF. The UOB gold price chart is useful when you want to take a quick look at prices and decide if you want to trade.
Some financial institutions offer the option of a Gold certificate or a Gold savings account, allowing you to buy and sell gold without the hassle of physical delivery.