Both belong to gold investment, what is the difference between gold ETFs and spot gold?

When it comes to speculating in gold, many friends first think of online financial products such as gold ETFs and spot gold, but since most of them do not have professional investment knowledge, they are not particularly clear about the differences in the market system and return efficiency between the two. , often do not know which investment to choose. So today, let's take a look: What are the differences between gold ETFs and spot gold in investment?

Difference 1. Differences in transaction decision rights

In fact, gold ETFs, to put it bluntly, are a type of fund investment derived from gold spot. Generally, when we invest in gold ETFs, we must hand over funds to fund companies or securities companies for operation, so investors generally cannot control the allocation of investment funds by themselves. . On the other hand, spot gold is just the opposite. It requires investors to formulate a feasible trading plan based on their own judgment on the market conditions. During the investment process, we can decide the trading operations and details of the warehouse receipts held by ourselves, and have 100% dominance.

Difference 2. Different transaction flexibility

Although gold ETF investment is more convenient, it can only make profits when the price of gold rises. Once the price of gold falls, investors will have no room for profit. And because spot gold has a flexible two-way trading system, we can go long when the price of gold rises and short when the price of gold falls. No matter how the market changes, as long as we accurately grasp the direction of the gold price, we can make money and have more profit opportunities.

Gold spot trend down or up? The key to prediction lies in two points!

Difference 3. Different transaction methods

Gold ETFs are investments that are mainly supported by physical gold, so when investors buy, they are equivalent to buying a relative amount of physical gold, so physical delivery is required when trading. Spot gold is different. It is mainly based on book transactions. Investors only need to buy and sell on Hong Kong platforms such as Daejeon Global according to the current international gold market quotations. The resulting price difference does not require physical gold delivery, which can save a lot of cumbersome processes and handling fees.

So to sum up, what is the difference between gold ETFs and spot gold in investment? For friends who want to own physical gold and do not want to bother to research the market, choosing gold ETFs is often a more ideal investment method. If investors want to obtain higher profits, then spot gold, which is better in all aspects, is undoubtedly a better option for us to quickly achieve our financial goals.