My pick for the best gold fund to buy as the gold price breaks records

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Tom Rodgers | Monday, 24th February, 2020 | More on: PHGP Enter Your Email Address My pick for the best gold fund to buy as the gold price breaks records News that the gold price has hit record-breaking highs north of $1,660 per ounce may be concerning to long-term investors.High gold prices are usually a sign that all is not well in stock markets. In fact, assets like gold and Bitcoin that don’t produce dividends tend to be most highly-prized when the market believes that there is severe weakness ahead.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Coronavirus is inflicting a heavy toll on Chinese growth and fear is building that the tragic outbreak could have a long-term negative ripple effect on global markets. In recent weeks, Apple has warned its profits will be hurt and it is becoming clear that businesses with supply chains dependent on East Asia will be hit hard.Going for goldWhen looking at the main ways of investing in gold, there are some obvious pitfalls that can catch out newbies and the less well-informed.Buying bars of physical gold is exceedingly expensive, they are tricky to store and hard to sell on.Putting your hard-earned cash into an AIM-listed junior gold mining company — which may never be profitable and takes part in a mining process fraught with high costs and long-term difficulty — is also a high-risk investing play.Instead, I would invest in the easiest option available: a gold ETC (exchange-traded commodity). These kinds of funds work in a similar way to ETFs, or exchange traded funds.The main difference is that instead of tracking the price of an entire stock market index, like the FTSE 100, FTSE 250 or S&P 500, they track the price of a commodity: like gold, silver, oil or natural gas.Buying a slice of an ETC offers four specific benefits. Firstly, it is simple to buy. Secondly, it is relatively low-cost. Thirdly, it allows you to hedge against future fragility in equity markets, and fourthly, UK investors can buy a slice of this product in a tax-efficient Stocks and Shares ISA or SIPP.Unlike when you buy stocks and shares in your ISA, there’s usually no dealing charge to pick up an ETC.WisdomTree Physical Gold (PHGP)WisdomTree Physical Gold (LSE:PHGP) has shot up to become the second-most traded ETC on the platform of one of the UK’s biggest brokers, Hargreaves Lansdown.It was worth $7.1bn at last count. It won’t be cheap to buy a slice of this ETC, but buying the biggest fund comes with some clear benefits.It sounds simple, but the larger the fund, the more popular it is. This means there is more liquidity — that is, more people buying and selling it every day. It is more likely you will be able to buy in and sell out quickly at the price you want.You’ll pay a 0.39% management charge per year, which for Hargreaves Lansdown is capped at a maximum £45 cost over 12 months. This may be different for other popular ISA platforms like AJ Bell or Interactive Investor, so it’s worth checking out, but should not be too expensive. Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Tom Rodgers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. 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