Gold Exchange traded fund (EFT)?
Can any one explain me about the gold eft and how to invest and where to invest.
Does it require demat account.
- Anonymous8 years agoFavourite answer
There are many types of gold ETFs, some of which consist of futures and derivative contracts in order to track the price of gold and gold-related indexes, while others consist of gold assets held in a trust. There are even gold ETFs that track companies in the gold industry.
For example, one of the most popular gold ETFs is GLD, the SPDR Gold Shares ETF. In the case of the SPDR gold ETF, you do not actually own the gold assets, they are held by a Trust. The Trust issues baskets in exchange for deposits of gold for when the baskets are redeemed. So, you have exposure to the price of gold, but don’t have a pile of gold coins sitting under your desk.
Decide which one of this you prefer and than call your broker and he will do the rest needful procedures on your behalf.Source(s): http://whatisfinancialmarket.blogspot.in/