There are many forms of Gold in which you can invest – for example, jewellery, gold bars, biscuits, gold coins, etc. In recent years, Gold ETF Funds have become more attractive and convenient form of investment. The fund houses providing gold ETF funds collect money from investors and use it to buy physical gold. The physical gold is then stored with a custodian.
The fund houses also keep some amount of investor’s money in short term instruments to take care of the expenses. Usually, each unit of the Fund is equal to one gram of gold, but in some cases, it may vary.
We have written some articles on Gold investment and Gold Exchange Traded funds in great detail. Check out the links below: