Asset Allocation Considerations: You have to bear in thoughts that gold as an asset class is best suited to diversify an Equity-heavy portfolio. This is not the case with models of Gold Funds which may be simply bought and redeemed from the Asset Management Company or via the inventory market. Furthermore, it's probably the most liquid asset simply after cash. What's extra not like vaults and lockers, there is only a minimal price within the form of expense ratio for maintaining your investment...