Investors use Gold ETFs to track and reflect the price of gold. While the assets in the fund are gold derivative contracts that are backed by the commodity, the intent of buying Commodities ETFs (exchange-traded funds) is not for an investor to own the commodity. A gold ETF gives an investor an opportunity to gain exposure to the performance, or price movements, of gold.  You never actually own a gold bar, bullion, or coins. Gold ETFs consist of gold contracts and derivatives and can only be redeemed for cash, never gold itself.

# Gold ETFs

Gold’s role as an alternate currency and the world’s strongest commodity offers investors an attractive opportunity to diversify their portfolios. Individuals who do not want to own the actual commodity but want to diversify their income by trading on the precious metal should invest in ETFs. It provides ample opportunity to gain market exposure on the price as well as the performance of actual gold.

The following are the most updated gold ETFs:

# Gold Miners ETFs

The GDX is an ETF that includes a basket of precious metal stocks. Although it includes some silver stocks, most of its holdings are gold companies. Gold mining stocks are usually market leaders when the price of gold is rising. These companies are actively involved in mining and other aspects of gold production.