Should you invest in Gold, Silver, or other Precious Metals in 2012 ...

Exchange traded funds, or ETF?s give investors both large and small a liquid vehicle for gaining some exposure to commodities markets while limiting the twin drawbacks of high capital requirements and non liquidity. Commodity ETFs are just as liquid as stocks or bonds, and many have extremely competitive share prices, allowing even small investors to get their feet wet in the commodities market without needing to take out a second mortgage.

And some of the best ways to invest in commodities are through the use of exchange traded funds (ETFs). These investing funds trade like stocks so they allow you to trade throughout the day.

Below are a few commodity ETFs from the precious metal sector.

SPDR Gold Trust (GLD). With $71 billion in assets and a return on investment so far this year of 20%, this is the Goliath of precious metals Commodity ETF s. Issued by State Street, this fund has a reliable and simple strategy, 100% of it?s holdings are in physical gold bullion! Helped by consistently rising prices, this ETF is one of the pricier ones to get a hold of, ranging between $120 and $200 per share.

iShares Silver Trust (SLR). A $10 billion fund, this commodities ETF is similar to GLD in that its holding are made up of physical precious metals, in this case pure silver bullion. While profits this year have been less than spectacular, silver potentially faces a large increase in value due to its increasing popularity as a cheaper alternative to gold circuitry in the electronics industry.

ETFS Physical Precious Metal Basket Shares (GLTR). This fund holds $250 million in assets and trades at about $100 per share. It provides a high level of diversification as its holding are made up of physical bullion of gold, silver, platinum, and palladium.

This is just the tip of the iceberg. You can find tons of commodity etfs to invest in by doing a little research on-line.

Besides Precious Metals, investing in oil is also hot right now. For the latest in oil investing or to find the best oil ETF you can go to our site.

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Source: http://personalmoneyinvestment.com/2012/02/29/should-you-invest-in-gold-silver-or-other-precious-metals-in-2012/

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