Far more convenient than having your own vault, and in this column’s view safer, are indirect means of ownership, such as keeping bars specifically assigned to you in a trader’s vaults or gold in the form of tradable securities such as exchange-traded funds.
Services like BullionVault allow you to buy gold online to hold in vaults on your behalf in various cities including London and Zurich. The commission is 0.5 percent and the storage and insurance costs 0.12 percent per year. BullionVault handles more than $ 3.8 billion (£ 2.7 billion) worth of gold and is part of a tightly controlled network of professional gold market participants who are trusted to read the metal without any verification of purity Unwind time.
There are a number of ETFs that hold physical gold to support every stock in the fund. For readers unfamiliar with ETFs, they are a kind of amalgam of investment trust and unit trust: like the former, their stocks are listed on the stock exchange; Like the latter, they are “perpetual” so that shares in them can be created and canceled at will, avoiding discounts and premiums on the value of the fund’s assets.
There is another type of ETF called synthetic that does not own gold but relies on “derivative” products. These funds are usually cheaper, but Questor has concerns and prefers those that are backed by physical gold. Examples of this are iShares Physical Gold (ticker SGLN), which costs 0.15 pieces per year plus your broker’s normal trading commission on purchase and has assets of $ 13 billion.
Questor says: buy
Share price at close of trade: £ 25.53