An excellent way to achieve portfolio diversification and stability is to invest in gold. That’s because gold has long been the safe haven investment from the travails of the dollar.
There are several ways to profit from the yellow metal, including investing in gold mutual funds, gold exchange-traded funds (ETFs), junior gold stocks, and gold options and futures.
Gold mutual funds and gold ETFs are two of the most popular ways to invest in gold, but investors should familiarize themselves with the differences between the two to best meet their individual investment goals.
In fact, according to Morningstar, gold mutual funds that own gold-mining stocks have attracted $358 million in net investment through February – a sharp contrast to 2013, when investors pulled an average of $355 million from the group every two months.
Below is a discussion of these differences between gold mutual funds and gold ETFs.