Is it better to invest in gold ETF compared to conventional mutual funds?

Gold ETF always moves up and gives u profit, whereas mutual fund vary with market more. Should ETF be bought for long term or shor term? Do they get you tax benefit also?

Public Comments

1. I'm actually looking at Managed Futures Funds. Heard of a great one from MF Global that isn't even availale to the public yet. But in doing my research I saw a Managing director on youtube, who is on a lot of financial shows. He strongly believes gold will hit 2k in the next couple yrs, and that the stock market is still going to crash. The money the gov is pumping into the US Banks is over 13 Trillion dollars but the US Stock market is valued at about that. So of course the stock market is rebounding right now, but the longer term result of all the gov. dollars being pumped into the system is unpredictable. But to answer the question, G may be a better long term investment, just make sure you get it when it's low. Remember oil was about 150, and dropped to about 40. I woulda thought that 70-80 would have been a bargain but who would have known it would have dropped that low. Benefits of managed futures though, you have professionals trading these commodities.
2. If you are sure the price of gold is going to go up buy a two times long fund. If an investor feels the price of gold is going to rise he has a lot of choices here he can purchase fund symbols GDX, GLD or IAU. In this sector there are 2times long gold funds DGP and UGL and 2 times short funds DZZ and GLL. I own GOLDX which is a mutual fund of mining stocks. I am just a little more conservative.
3. You are badly mistaken if you think the Gold ETF "always moves up and gives you a profit." Have you looked at the ETF symbol GLD in the past 2 weeks? A gold ETF is simply an investment that moves up OR DOWN with the price of gold. If you are comparing GLD with a precious metals mutual fund, they are very different. GLD owns actual physical gold, where most precious metals mutual funds own gold mining stocks which may or may not track the price of gold precisely. An ETF and mutual fund are more or less the same thing. An ETF is an Exchange Traded FUND - a mutual fund that is traded like a stock. The tax implications are exactly the same as trading a stock, there are short term and/or long term capital gains to be concerned about. I think you need to do a lot more research before you invest.
4. Gold does not always move up. It just seems so today because of the very poor government currently in place world wide. Actually, gold in the US is subject to a collectibles tax. Especially the ETF. Gold mining stocks on the other hand are not. I suspect that some conventional mutual funds will actually out perform gold in the next few years. I could however be mistaken on that point. The old adage of not putting all of ones eggs into on basket also applies to gold although I suspect if one had to pick just one basket that basket would be hands down the favorite.
5. use a silver etf, silver has much more room to grow then gold and had you invested earlier this year it could have yielded 60% compared to golds 30%. when the economy picks back up over the next few years gold will retain or fall from current levels . but silver on the other hand is at an all time low compared to it historical gold/silver value ratio. silver is also a much more used and far less recycled material, so if mines are unable to produce more, the price will become much higher at a faster rate. gold is a "store of value" compared to the dollar, silver is a commodity that can only rise with future uses, i.e. electronics,medical tools and biocides, and super conductors.
6. Are you comparing Gold ETF to equity mutual funds or to gold funds? If you are comparing to gold funds, then let me clarify that funds like DSP Gold Mining Fund invests in companies that is into gold mining, and gold stocks are more leveraged to the gold prices than the gold itself. So obviously the two are not comparable. Same for equity mutual funds. Both serve different purpose Now coming to GOLD ETF, investing in gold through ETF is a very good option compared to buying gold physically, or through commodity exchange (unless you plan to make jewelry out of it). Gold ETF is more tax efficient, you don't have to pay wealth tax on this and the taxation. Gold ETFs schemes are treated like non-equity mutual funds for the purpose of taxation. So, the gains attract short term capital gains (STCG) tax if held for less than one year and long term capital gains (LTCG) tax if the period of holding is more than a year. Gold ETF can be bought both for the long term as well as short term. If you think the prices will rise now, you can buy for short term and exit after booking profits. However, gold is a good long term investment and you can buy gold ETF for the long term. To know more about Exchange Traded Funds (ETF), you can check these links, good articles on ETFs: 1. ABC of Exchange Traded Funds: http://economictimes.indiatimes.com/articleshow/quickiearticleshow/3698368.cms 2. The middle path with ETFs: http://www.financialexpress.com/news/the-middle-path-with-etfs/417520/ hope u fnd the info useful
7. I am going to go ahead and tell you that I believe gold has topped out and will not make more higher high for the next 12 months. My opinion, but I believe it firmly.
8. yep gld or slv best plays