Three main ways to get Gold exposure – Morgan Stanley
While Gold is not a strategic asset class, there are tactical reasons to consider adding it. See three ways to go about it, according to strategists at Morgan Stanley.
Physical Gold
“Investors can buy Gold bars and coins. Investors may pay a premium over the spot price of Gold. Storage fees usually apply. Investors can also take delivery of physical Gold if they want to store it themselves. In such cases, delivery fees would apply.”
Gold funds that own the metal
“Some mutual funds and exchange-traded funds offer investors exposure to Gold. For funds that offer the most direct exposure, their value tracks the price of Gold. The fund shoulders the cost of holding physical supply and passes it along to the investors in the expense ratio. There are some drawbacks: Some Gold funds are taxed as collectibles, so they don’t benefit from the lower long-term capital-gains rates for which stocks may qualify. Plus, they don’t produce any income, so the expense ratio can eat into principal every year.”
Mining companies
“Investors can get exposure through equity in companies that mine for Gold, including the purchase of individual stocks or as part of a fund.”