Gold has an inverse relation with equity investments. We use cookies to ensure that we give you the best experience on our website. Gold ETFs are similar to buying an equivalent sum of physical gold but without the hassles of having to store the physical gold. By investing in gold funds, you invest in stocks of companies operating in gold and gold-related activities. Gold acts as a bulwark in times of emergency as it is can be converted into cash at ease. On the other hand, if you are buying gold coins and gold bars it would be 24 karats. High liquidity and inflation -beating capacity are its strong selling points, not to mention charm, prestige, and so on.