The Safety of a Canadian Gold ETF

While investing in gold is already a safe investment, investing in a Canadian gold ETF might be one of the safest investments you will ever make. Two of the most respected and well established gold ETFs in the world are based out of Canada; Central Fund of Canada and Central Gold Trust.

Central Fund of Canada
The headquarters of Central Fund of Canada are found in Calgary. The stocks can be bought on the Toronto and the New York Stock Exchange. While many gold ETFs don’t actually hold any physical gold, the Central Fund of Canada is required to hold mainly precious metals, gold and silver, while it also holds a small percentage of cash. It is therefore not a true gold ETF but more accurately, a precious metal ETF.

The fund was established in 1961, this long history is part of the reason why it commands so much respect. Another aspect making the fund trusted is the published codes of governance and ethics.  Currently the fund stores approximately 43 tons of gold!

Central Gold Trust
The Central Gold Trust is a pure gold ETF holding almost exclusively gold. Like the Central Fund of Canada its headquarters are located in Calgary and the stocks can be acquired on the Toronto and the New York Stock Exchange.  Currently the Central Gold Trust holds around 14 tons of gold.

When You Want Safety
Investing in gold is often done to hedge against economic trouble. The investor is looking to hold a safe asset. In this case, gold ETFs in less stable countries or precious metal ETFs using less accurate tracking, such as futures contracts, might not be ideal. If you’re looking for the perfect risk adverse gold ETF, Canada might just have what your looking for; an solid ETF holding large quantities of physical gold.

PeteThe Safety of a Canadian Gold ETF