If you are looking for a great way to leverage your existing portfolio you might want to consider investing in gold ETF funds. This is a great way to take full advantage of all of the action happening in the gold market. If you don’t already know, the acronym ETF stands for the words exchange traded funds.
This is a great way for an investor to take advantage of a hot market without having to really understand it 100% because you are buying a fund that operates like a stock, so you are well diversified in the sector the second you purchase shares of the gold ETF fund. And gold has been proven historically to be a reliable investment in whatever economy that happens to be present at the time of the investment.
The first thing you want to learn more fully when trading gold ETF funds is you need to familiarize yourself with the gold mining stocks index. A lot of people often view these mining stocks as risky but at the same time these particular stocks are also way below the levels of long term investments. This is great for the gold ETF trader because buying an ETF of this nature is more conducive for short term trading which is what you want since this is the correct vehicle and you want the ability to protect yourself during such volatile times.
The next place you should get comfortable with is the gold stocks index when trading gold ETFs. Please don’t accidentally confuse this with the gold mining stocks index because the two are mutually exclusive and very different. One thing you’ve probably took a notice to right away is that for the last decade gold has been testing it’s long term levels of support throughout this time.
The funny thing is that even though gold and gold ETF funds have been on the rise for the better part of the last 10 years, between the years 2006-2008 gold has actually underperformed. This is very encouraging to those who intend to trade in gold ETF stocks because it means that if you invest now you will see much higher rewards due to the unexpected underperformance.
But don’t just take my word for it. You should do your own research and I highly recommend you check out the Gold and Oil Guy Newsletter. Knowledge is power and this newsletter presents really powerful stuff on a routine basis – it is an absolute must for people who are new to Gold ETF and people with a wealth of experience.
So, if you currently find that gold stocks have been selling in a downward trend, please realize that historically gold is fully capable of holding its own. So you can definitely expect to experience both higher highs and higher lows in a down economy and the gold ETF will stand firm in the long term no matter what the case may be.
So do yourself a favor and get involved in the lucrative world of gold ETF investing today. It’s a very safe investment and one that will bring you plenty of rewards.
*Disclaimer – The author is not a Professional Financial Advisor and this commentary is opinion, not financial advice. Before making any investments of your own, seek out the advice of a qualified Professional Financial Advisor!