If you are risk averse, invest in gold ETF options which would limit your downside to the option premium.
Can you pls explain this gold ETF options with benefits.
Gold ETF is nothing but a simplistic approach to investing in gold. You no longer need to buy physical representations of gold, but instead, can trade with it, just like you would do a mutual fund or a stock. It is all paperless. These funds (ETFs) are such that almost the entire corpus (to the tune of 99% in most), goes into gold at bullion rates, and the rest 1% might be put into select rated financial instruments. Due to this pattern, it doesn't matter which fund house's ETF you end up taking - they will give you the same returns over any duration.
Exchange-Traded Funds (ETFs) are securities that trade like stocks but are supposed to track the price of an index like the Dow or S&P 500 instead of an individual company, or they may be designed to track the price of a commodity like oil, gold, or silver.
In and of themselves, ETFs are not illegal or immoral and may in fact be the right purchase choice for traders. The main issue I have with the gold and silver ETFs is that they have been presented to potential investors as 100% backed by gold and silver. In fact, evidence is mounting that some ETFs hold no gold or silver at all, and may even be part of a campaign on the part of central banks and big government to keep the prices of gold and silver from appreciating.
ETFs are among the fastest growing investment vehicles in the financial market today, accounting for more than $178 billion in "net inflows" in 2008, while traditional mutual funds experienced almost $179 billion in "net outflows" during the same period. In other words, $178 billion more flowed into ETFs in 2008 than flowed out, while $179 billion more flowed out of traditional mutual funds than flowed in.
Sometimes gold and silver ETFs are the right choice for traders, but the wrong choice for investors. That's because when you scrutinize the gold and silver ETFs carefully, it turns out that when you buy ETF shares, you may not be buying actual gold and silver, but rather exposure to the price of gold and silver… and there's a big difference.
ETF Shares Not Same as Owning