n NISM Certifications
X NISM Series X
Medium

The main advantage of Gold ETF over physical gold is:

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    No need for PAN

  2. B

    No Demat account needed

  3. No security or storage risk

    Correct answer

  4. D

    Prices do not fall if gold prices fall

Why this is the answer

Gold ETFs eliminate the risks associated with storing physical gold, as they are held in demat form.

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