Q: I hear financial influencers on YouTube saying that you can't trust that gold ETFs actually hold enough physical gold to support the ETF holdings. I would appreciate your comments regarding gold ETFs and virtual gold.
Thanks!
Thanks!
5i Research Answer:
Legally, major gold ETFs hold real, physical gold in secure vaults, though audit records typically report a very small difference between the actual count and the amount reported by the ETF. Gold ETFs are fully backed and audited. Similar to how investors own shares in public companies—where most never see a physical share certificate—the legal ownership still exists.
We think owning gold through ETFs or physical gold bars is economically similar. It comes down to personal preference, but overall, we don't see an outright reason to doubt the reliability of gold ETFs.