3 ETFs for Income-Hungry Gold ETF Investors (GLDI, GLD) _ Investopedia how much should i invest in gold

3 ETFs for Income-Hungry Gold ETF Investors (GLDI, GLD) _ Investopedia how much should i invest in gold

Many people react to uncertain economic times by investing more of their assets into gold. Gold offers diversification benefits because of its historically negative or low positive correlations to traditional financial markets. It tends to maintain value during periods of market volatility while other assets and paper currencies tend to lose value. Individual investors, institutions and even nation-states have historically viewed gold as a safe haven for their wealth because gold bullion hedges against inflation, macro risk and geopolitical risk.

With a significant amount of gold-based exchange-traded funds (etfs) readily available, investors can now own physical gold without having to worry about storing the metal in a vault. Plus, many gold etfs are highly liquid, so they can be bought and sold efficiently.How much should i invest in gold

in short, there has never been a time in history where owning large amounts of gold was so easy.

While many individuals and entities allocate portions of their portfolios to gold, the majority of gold-based investments do not pay interest or dividends. This makes sense, since the actual metal just sits in storage and does nothing. However, there are a handful of gold and gold-related investments that do pay interest or dividends, and the following are the three investments of this kind with the highest yields, as of march 14, 2016. Credit suisse X-links gold covered call ETN

The credit suisse X-links gold covered call ETN (NASDAQ: GLDI) is the only fund in this category that offers direct and pure exposure to gold bullion. It is an exchange-traded note (ETN) that is linked to the return of the credit suisse NASDAQ gold FLOWS 103 index.How much should i invest in gold gold itself does not generate any yield, but this ETN does. First, the fund maintains a notional long position in shares of SPDR gold shares (NYSEARCA: GLD), which is the largest gold ETF in the world with approximately $32 billion of asset under management (AUM) and over 798 tons of gold bullion held. Second, in order to generate a yield, the ETN sells out-of-the-money call options on its SPDR gold shares ETF position on a monthly basis. The net premiums received from selling the calls are paid to investors each month. The ETN’s yield is a whopping 9.04%, and its 52-week range is $10.20 to $12.06 per share. Global X gold explorers ETF

The global X gold explorers ETF (NYSEARCA: GLDX) seeks to provide investment results corresponding to the performance of the solactive global gold explorers index, which was constructed to track the performance of the largest and most liquid public companies that actively explore for gold.How much should i invest in gold this fund provides a unique way to gain indirect exposure to gold through its focus on gold exploring companies. Many of these companies fail to find meaningful numbers of deposits, but they can represent a lucrative proposition when they do succeed. The fund notes that investing in gold exploration companies is a high risk/high reward proposition, similar to that of early stage venture capital investments. The fund’s yield is 8.95% and its 52-week range is $14.58 to $24.22 per share. It is currently invested in 22 different gold explorers. Sprott gold miners ETF

The sprott gold miners ETF (NYSEARCA: SGDM) seeks to deliver exposure to the sprott zacks gold miners index, which tracks the performance of mid- to large-capitalization gold companies whose stocks are listed on major U.S.How much should i invest in gold exchanges. The index is designed to include the 25 stocks that have the highest beta to the spot price of gold, while also using a rules-based system to adjust each company’s weight based on various financial statistics, such as revenue growth and attractive long-term debt-to-equity ratios. The index is rebalanced quarterly and may include some silver-related investments if they meet certain criteria. The fund has a yield of 1.08% and a 52-week range of $11.22 to $19.24 per share.