Nevertheless, “if you trade a lot, then use GLD,” Jared Cummans, analyst at ETF Database, said in the story.
Since GLD is so much larger than the competition, its size helps create a more cost effective bid/ask spread.
“[GLD] can also be used periodically as a satellite holding by speculators looking to hedge unexpected inflation or currency depreciation,” Abraham added. “GLD’s exposure is as granular as they come, but it serves as a very reliable access vehicle in a traditionally hard-to-tap segment of the market.”
For other options like SGOL, which holds gold in Swiss vaults, it all depends on an investor’s preference for where they feel gold would be stored the safest. [Swiss Gold: Does It Matter Where ETFs Store Their Bullion?]
“Those concerned with geographical diversification of bullion vaulting will find SGOL attractive,” Bailin said.
For more information on gold, visit our gold category.
Max Chen contributed to this article.