Gold-backed ETFs have grown strongly in scale and popularity over the last decade and their combined gold holdings now surpass all but the largest central bank gold reserve holdings. However, its important to understand the mechanics of these gold-backed ETF investment vehicles and to appreciate what they can, and can not, provide to gold investors. This infographic takes you on a tour of gold-backed ETFs and illustrates insights into how these products really work.
The comments above and below are excerpts from an article from BullionStar.com – All rights reserved) which has been edited ([ ]) and abridged (…) to provide a fast & easy read.
For more information about the mechanics of gold-backed ETFs, please also see BullionStar Gold University article Gold ETF Mechanics.