Instead of owning physical gold, silver, platinum and palladium coins and bullion outright and storing and insuring these precious metals, investors can buy shares in an exchange traded fund (ETF), commodity (ETC) or note (ETN). As the name implies, these securities are traded on an exchange. Many ETFs and ETCs are backed by real bullion. ETNs are unsecured synthetic instruments and do not store metal bars or ingots.

Gold, Silver, Platinum and Palladium ETFs, ETCs and ETNs are Volatile

Precious metals ETFs, ETCs and ETNs are investment pool trusts that sell shares, the prices of which directly or indirectly track metal bullion prices. Shares are offered by prospectus, like mutual funds, but are not regulated the same way. Exchange traded securities are as price-volatile as the precious metals they shadow, and carry at least the same risk.

Most ETF, ETC and ETN shares are listed on regulated exchanges, just like stocks and mutual funds. Investors can buy and sell their shares quickly online with an ordinary brokerage account.