Why It May Be Time to Load Up on Gold ETFs
The Globe and Mail reported on the outlook for gold ETFs.
The Globe and Mail reported on the outlook for gold ETFs.
Mineweb reported on the performance of gold ETFs in relation to the physical commodity.
While investors make the decision between Gold Equity funds versus Gold ETFs, a primary consideration should be whether they prefer to own an actively managed fund or to minimize investing fees and limit the security or market timing risks of failing to correctly anticipate the future.
In spite of the steady climb in gold’s spot price since the beginning of 2011, the overall share price of gold mining companies has not followed suit, particularly in the majors. Gold is up about 4.6 percent since January while gold mining stock indexes have shown a drop of as much as 10 percent.
CNBC News reported concerns that a crash is imminent following the rise in gold ETFs.
Goldalert reports that Gold ETFs dipped Thursday, with the SPDR Gold Trust (GLD) falling $0.68, or 0.5%, to $134.02 in morning trading.
Moneycontrol.com reports that the value of gold exchange traded funds has seen a four-fold increase.
With a rich history as the center of the global gold market, India is the world’s leading gold consumer. Although most Indian gold demand is focused on the jewellery sector, investment demand for gold in the region is experiencing substantial growth in the form exchange-traded funds.
While it’s not what many gold investors want to hear, there is a growing chorus of consensus that gold is not trading off fundamentals and that in fact the recent price rally is merely momentum driven.
The fall is quickly approaching and Tuesday’s price action gave investors a slight tease of what the traditionally gold-friendly season has in store this year. The usual suspects—fear-induced investment demand and gold-hungry Asia—are still driving the gold bus home for the metal’s fans.
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