With the volatility of the stock market, more investors are looking to diversify their portfolios with alternative assets like precious metals. Gold in particular has historically been viewed as a stable store of value during times of economic uncertainty. Many investors are wondering if they can invest in gold through mainstream online brokers like Etrade. The answer is yes, Etrade provides several options for gaining exposure to gold.
Etrade offers trading of gold ETFs
One of the most popular ways to invest in gold through Etrade is by trading gold ETFs (exchange traded funds). An ETF allows you to buy and sell a basket of assets like a stock. Gold ETFs hold physical gold bullion as their underlying asset. Some popular gold ETFs on Etrade include: GLD, IAU, SGOL, etc. These provide direct exposure to fluctuations in gold prices. You can place trades to buy and sell these ETFs commission-free on Etrade’s platform.
Trading CFDs on gold is available at Etrade
Etrade also allows trading Contracts for Difference (CFDs) that track the price of gold. CFDs provide leveraged exposure to gold prices without needing to hold the physical metal. For example, you could trade a CFD that rises 1% for every 1% increase in spot gold prices. This allows magnified profits but also increases risk. CFDs on gold and other commodities can be traded on Etrade’s forex and CFD trading platform.
Gold futures contracts can be traded through Etrade
For more advanced traders, Etrade gives access to trading futures contracts on gold and other metals. Futures allow speculating on gold prices without owning gold directly. On Etrade’s futures trading platforms, you can trade gold futures contracts like GC or MGC which represent 100 troy ounces of gold. You need to maintain proper margin levels to keep gold futures positions open.
In summary, Etrade provides several ways to invest in gold online, including trading popular gold ETFs commission-free, speculating on gold price movements through CFDs and futures contracts.