As far as shares in the major stock exchange is concerned, there are a few exchange-traded products in precious metals like gold. The traded products in this instance include CEFs, ETFs and ETNs. If you aren’t careful, you could find yourself in a complex situation. Although ETPs (Exchange Traded Products) are a simple way to get the right type of exposure for the prices, there are several things that you should be aware of.
Such traded gold products can have risks that you wouldn’t believe. A lot of people tend to avoid this situation altogether because they don’t want the hassle of dealing with all of the complex features that are involved. Here, you will also need to be aware of the fees that are associated with this situation. You will also be charged for storage, insurance, and a commission for the activity of trading. The good news here is that the fees are minor and they are charged each year. An ET is also known as an Exchange-Traded fund. A lot of people get this mixed up with UITs. UITs stand for Unit Investment Trusts or open-ended companies. The difference between the two is that ETFs are not to be sold to any investors directly.