Gold ETFs are relatively new option and are not as popular as physical Gold. Investors who usually invest using demat account are aware of this option. They provide easy access to gold investment without having the burden of physically owning it.
Advantages of Gold ETF Investments
1. Investment is very easy. You only need a demat account for investment.
2. No concept of losses in terms of premium or discount.
3. Safe as no physical possession.
4. Low initial investment.
5. Various options available because of technology advancement like SIP etc.
Disadvantages of Gold ETF Investment
1. You don’t possess it in physical form so might be at loss in crisis situations (ex. war).
2. Might have liquidity issue.
3. Complex structure.
4. Transaction fee and annual maintenance charges.