Discover the Advantages of a Gold Trustlink

  • Gold trusts offer an alternative to owning physical gold.
  • Gold trusts are a type of exchange-traded fund (ETF).
  • Gold trusts invest in gold through a custodian, typically at a bank.

Investing in gold can help protect your portfolio from short-term market volatility, inflation, and currency depreciation. However, with paper gold investing, you are exposed to the risk of fraud or theft. A gold trustlink is a type of paper gold investment that may suit you.

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What Is a Gold Trustlink?

In 2018, the Gold Trustlink was launched. The Trustlink is intended to provide investors with a cost-effective means to own physical gold. The Trustlink charges no annual storage fees, and it offers flexibility and liquidity. The Trustlink is offered by ETF Securities, a fund issuer that works closely with the ETF industry's leading market maker, NYSE Arca.

Understanding Gold Trustlinks

Gold Trustlinks are essentially custodians that hold gold bullion. The gold and silver are deposited by shareholders and can later be withdrawn.
Gold Trustlinks are similar to mutual funds in that they are managed by professionals who select investments for the fund. Instead of investing in stocks, bonds, and other securities, however, Gold Trustlinks invest in bullion, gold, and silver.
Gold Trustlinks have many advantages for investors. They typically charge lower fees than private vaults. Gold Trustlinks also don't charge storage fees for gold.

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How Does Gold Trustlink Work?

Gold has been a traditional safe haven for investors and retirees, so it's no surprise to see gold trusts being set up as investment vehicles. However, setting up a gold trust isn't as simple as buying a few gold coins and putting them in a vault. While a gold trust may be set up as a formal trust, there's no official trustee.
Instead, a gold trust is set up as a special type of self-directed IRA. The owner of the gold trust is the trustee and, as such, is responsible for holding the gold that is in the trust.
While gold trusts are set up as self-directed IRAs, they are limited in the type of gold that can be held in the trust. Only gold bullion bars of 99.5% pure or purer, as defined by the London Bullion Market Association (LBMA), are allowed. The gold bars must be stored by a trustee or custodian, and the gold must weigh at least 400 ounces.

Advantages of Gold Trustlinks

Easy transfers to and from your Gold IRA.

Self-custody of physical gold.

No minimum investment, just $2,500.

Access to a wide selection of gold-backed securities.

No middleman or custodian, so fees are lower.

A wide selection of gold IRAs.

Peace of mind knowing your investment is backed by real gold.

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Disadvantages of Gold Trustlinks

A disadvantage of gold trusts is that, like ETFs, they incur annual management fees and custodial fees. This avoids the disadvantages of buying coins directly, where sellers often charge commissions. However, you will still be paying fees to the trust.

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The Bottom Line

The gold trustlink was introduced in the 1980s as an option for investors who wanted to hold physical gold in convenient, cost-effective, and tax-efficient ways. The trustlink provides all the benefits of a trust in the convenience of a mutual fund, which is ideal for investors who prefer to have their gold stored in a vault.