Although investing in gold is perceived as relatively safe, investing in a Canadian gold ETF could very well be one of the safest places to invest that you will ever see. Two of the most stable and most reputable gold ETFs of any in the world are based in Canada, the Central Fund of Canada and the Central Gold Trust.
The home office of the Central Fund of Canada is located in Calgary and its stocks may be purchased on both the Toronto Stock Exchange and the New York Stock Exchange. Although there are many ETF gold funds which do not possess any physical gold, it is mandated that the Central Fund of Canada hold various precious metals, gold and silver, in addition to a nominal percentage of cash. So, it is not a traditional gold ETF but rather, and more correctly, a precious metal ETF.
Formed in 1961, the long track record of the Central Fund of Canada is one contributing factor to the respect it enjoys. Another reason this fund is considered so reputable is due to a published code of governance and ethics. The fund presently possesses a stockpile of forty-three tons of gold!
The Central Gold Trust, with holdings virtually all in gold, is more of a pure gold ETF. As with the Central Fund of Canada, its home office is in Calgary and its stocks may be obtained through both the Toronto Stock Exchange and the New York Stock Exchange. At present, the Central Gold Trust possesses about fourteen tons of gold.
An investment in gold is frequently due to an investor’s desire to hedge against economic uncertainty and trouble as he wants to possess a historically safe asset. With that being said, gold ETFs of less stable nations or precious metal ETFs which track less accurately such as with futures contracts, may not be a perfect scenario. Therefore, should you be seeking a perfectly risk averse gold ETF, Canada may very well house your target, an established ETF possessing large amounts of physical gold.