A fourth way to get involved with gold comes in the form of closed-end funds, or CEFs. These have a similar make-up to mutual funds but with a limited number of available shares; fortunately they are traded on global stock exchanges as well. The Central GoldTrust (NYSEMKT:GTU) of Canada gets its value from actual tons of gold held in the Canadian Imperial Bank of Commerce. GTU stands as a secure and low-cost alternative (especially in regards to expense fees), and one can rest easy knowing that the shares are based on actual precious metals held in safe-keeping.
With so many options to invest in gold, those fearing inflation or further potential drops in the stock market have a few alternatives. Having the availability to trade these from a retail account and to trade in either direction are added bonuses, and they can offer a level of protection and sophistication that a jewelry box tucked in a dresser drawer cannot. While gold is still close to all-time highs, further uncertainty in worldwide economies could see it pushed higher.
The article Gold: Time to Dump or Time to Buy? originally appeared on Fool.com and is written by Jake Mann.
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