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Step 1
To invest in a gold ETF, you first need to know what a gold ETF is. A gold ETF is an exchange traded fund with gold being the only commodity traded. Once you buy a gold ETF, you don't actually own a gold bar. You own an asset that is backed by gold.
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Step 2
The most common gold ETF is GLD. GLD is a spider ETF. People use Gold ETF's to hedge risk in their portfolio. Most analysts and financial advisors agree that Gold is a necessity in an individual's portfolio.
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Step 3
Instead of risking your money on one gold company, most people prefer to buy a gold etf to spread the risk with the ETF. You don't have to worry about a gold company doing bad and losing money while gold prices skyrocket. With a gold ETF, you will track the price of gold only.
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Step 4
To buy a gold ETF, you need to log into your online brokerage account and place the order the same way that you would a stock. Simply enter the ticker symbol of the Gold ETF you like and place the order. You can also do this via phone if you do not have an online brokerage account. Simply call your broker and give him the ticker symbol, price, and how many shares you want to purchase.
