Gold funds: how they differ from the metal
· beginner
Automated material · TradeAlmanac editorial deskDraft prepared by a language model from our stored data; not reviewed by an editor.
Gold can be bought in several ways, and they differ more than they appear to.
The exchange-traded fund
Units trade on the exchange; inside sits metal or claims on it. Liquidity is good, the entry threshold is low, and there is a management fee.
The risk is infrastructural: where the metal is physically stored and through which chain the rights are recorded both matter — Restrictions and infrastructure risk: how it differs from market risk.
The unallocated metal account
A bank record of a quantity of metal. Physical delivery is usually not contemplated. It is not covered by the deposit insurance scheme — unlike a rouble deposit at the same bank.
A bar or a coin
Physical ownership with no intermediaries. In exchange: storage, insurance, and a noticeable spread between the buying and selling price.
The currency component
Gold is priced in a world currency, so its rouble price depends on both the metal and the exchange rate. Part of the move owners take for gold rising is the rouble weakening: Currency exposure: you have it even if you never opened it.
The role in a portfolio
Gold produces no income: it has no coupon, no dividend and no profit. Its role is behaviour weakly linked to equities in certain periods — that is, a contribution to resilience rather than to return — Diversification: what it gives and what it does not.
Related: What is actually inside a fund.
Draft prepared by a language model from our stored data; not reviewed by an editor.
Model: claude-opus-5
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