What is the difference between buying physical precious metals and an exchange-traded gold product such as the iShares Physical

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The main difference is that with physical precious metals, you actually own the metal yourself, whereas with an exchange-traded gold product such as the iShares Physical Gold ETC, you are purchasing a financial instrument that is only partially backed by physical gold.

When you buy gold from Holland Gold, you purchase gold coins or gold bars made of physical bullion that are entirely your property. You can have these bars and coins delivered to you or securely stored by Holland Gold.

With a gold ETC (such as the iShares Physical Gold ETC), you are not buying gold itself but a financial product that tracks the gold price. The issuer of the ETC — short for Exchange Traded Commodity — typically holds physical gold as collateral, but that gold belongs to the fund or issuer, not to you personally. In other words, you own a claim on that gold, not the actual bars or coins.

Learn more about the different ways to buy physical precious metals through Holland Gold.

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