The contract itself is what is traded on an exchange. Gold futures are more liquid than physical gold and have no management fees, although brokerage firms may charge a trading fee (also called a commission) per contract. And then there's the added cost of storing the gold. You have to pay a fee for a safe, and if you have a lot of gold, it can cost you a few hundred dollars a year for a good-sized box.
Of course, if you're afraid of the Order 6102 scam launched by FDR, you probably have your gold at home in a safe, so that's a one-time offer. But are you foolish enough to distrust the government and trust that your gold reserve will be safe without insurance? For private investors, buying gold in a vault has several benefits in terms of costs compared to investments in physical gold that is delivered or delivered to the customer. Since suppliers of domed gold usually purchase gold in bulk in the form of large gold ingots and in a highly industrialized manner, resulting in lower premiums, and since their suppliers can process domed gold very efficiently, buying domed gold is usually more profitable than buying gold coins or gold ingots that are delivered or delivered to the investor. The costs of buying physical gold may include a premium on the market price of gold that the investor must pay, as well as any fees or commissions for the purchase of gold.
In the case of domed gold that never left the professional vault, it is not necessary for the buyer of the gold (who may be the supplier of the domed gold or a third party) to verify the value of the gold before buying it. Some retailers consider buying more than 100 gold bars (or 500 gold coins) a “wholesale purchase”, but this will largely depend on the seller. They include false ratings about the quality of the coins, the use of cheaper alloys instead of pure gold, and even blatant scams where you don't even own the gold you buy. Instead of investing in a mutual fund, you can also buy shares of gold mining companies (often referred to as gold stocks) directly.
When buying gold jewelry, keep in mind that the price you pay will be linked to the craftsmanship of the piece and that the amount of gold it contains will be only a percentage (carats) of its total weight. Compared to buying physical gold in the form of ingots or ingot coins that are given or given to the investor, investments in domed gold tend to be more profitable for private investors. In addition to the premium on the price of gold at the time of purchase and depending on the gold supplier, the investor often has to pay a commission that is normally calculated as a percentage of the price of gold. The overall spread consists of the profit margin of the price of gold at the time of purchase from the gold trader (“buying differential”) and the discount on selling gold to the gold trader (“selling margin”).
While you probably want to buy ETFs that actually hold physical gold, there are funds that invest in companies in the gold industry, often gold mining stocks or gold streaming companies that offer funding to gold miners. This is mainly, but not only, due to the fact that suppliers of domed gold usually purchase gold in bulk and to the fact that their suppliers can process domed gold more efficiently than other investments in physical gold.