[Gold ETF] Investing in a Gold ETF | Gold Silver ETF

Write-up by David McMahon

The value of gold has sky-rocketed in excess of the very last handful of decades, and investing in a gold ETF is 1 of the best techniques to get into the market. Soon after being stagnant for years, the price tag of gold commenced to grow exponentially around 2001. Back then, gold could be had for just $ 300 an ounce. By 2006 it was going for $ 600, and final year it topped $ 1,000 an ounce. A lot of traders are wondering how they can get into gold with no really having to maintain gold bars or coins in storage. The solution is a gold ETF.

There are several methods to acquire exposure to gold making use of an trade traded fund (ETF). You can gain publicity to the price of gold by itself, or through gold mining. We?ll give a couple of examples. The 1st is the SPDR Goldshares believe in. This fund trades on the New York Stock Trade (NYSE) with the ticker GLD. Priced at about one/10th the cost for an ounce of gold, it?s an cheap way to get in the market. So if gold is going for $ 1,one hundred an ounce, GLD will be all around $ 110 a share.

Here?s how it works. The fund is a have confidence in that owns gold. In 2009, it owned 36 million ounces of gold. When you purchase shares of this fund, you might be purchasing a small piece of this believe in. Which is wonderful isn?t really it? For about a hundred bucks you can turn into aspect-proprietor of 36 million ounces of gold! Given that the shares trade on the NYSE, you can acquire and sell them anyplace you can trade shares. They?re simple to acquire and straightforward to unload when you want to get out of the market place (picture getting to lug your bag of gold coins from the bank to some coin vendor). The yr to date returns on GLD have been staggering. More than the earlier yr, the return was about 27%. Of course its challenging to say what cherished metals are going to do in the long term, but if you happen to be searching to invest this may be your ticket.

GLD is not the only gold ETF out there. Traders may possibly also be interested in the Powershares DB Gold Fund. This is an additional equity that also trades on the NYSE. This fund tracks the value of gold by way of the Deutsche financial institution liquid commodity index. This fund, which trades under the ticker DGL, may possibly be of interest since the price tag per share is reduce than GLD. The YTD return on the fund is about 13% at the time of writing, not as large as GLD but even now really good.

An fascinating twist is to take into account investing in gold mining. The Junior Gold Miners ETF (GDXJ) will give investors publicity to organizations that receive at least fifty% of their profits from gold and silver mining.

Source: http://goldsilver-etf.com/gold-etf-investing-in-a-gold-etf/

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