SPDR gold stocks: GLD As the price of real gold moves, so does the price of GLD. Investors can raise the price above or below the net asset value, meaning that individual stocks may be worth a little more or less than their equivalent of 0.093995 ounces of gold. At the beginning of the fund, stocks were worth one tenth of the price of gold. SPDR Gold Trust (GLD), the largest and most popular gold ETF, is an investment fund that holds physical gold to support its shares.
Gold IRA brokers can help investors to purchase GLD shares and other gold-backed investments. The stock price follows the price of gold and is traded like a stock, but the vast majority of investors are not entitled to claim the underlying gold. A gold ETF like GLD is just one way to expose yourself to gold. Other methods include buying gold itself, using ingots, coins or jewelry, or buying it as a commodity that can be traded on commodity exchanges. Another way is to invest in mining stocks such as Barrick Gold (GOLD), Franco-Nevada (FNV), Freeport-McMoran (FCX) or Rio Tinto (RIO).
If you're looking for an inexpensive way to invest in the direction of the price of gold, GLD is ideal. If your goal is to invest in gold as a hedge against the rest of your portfolio or as a tactical investment, GLD may be a good choice. Once you buy gold bars, it's yours and doesn't require the backing of any bank, government, or brokerage firm. This is because GLD shares are designed to try to closely mimic the price of gold minus the fund's fees and expenses.
Like the gold GLD ETF, if you buy SLV shares, you could benefit from the rise in the price of silver, while you could lose money if silver prices fall. Good examples of this physical demand are purchases by central banks and physical buyers of gold in the United States who rush to buy gold ingots and coins at authorized stores. With the emergence of new online trading platforms, investing in gold bullion is now as simple as buying an ETF. To fully understand how quickly the security of your investment can be called into question, you need look no further than the GLD ETF.
And to see the best stocks to buy or view, check out the IBD stock lists and other IBD content, such as how to find the best ETFs. The old way of buying gold bars consisted of finding a dealer, a storage facility, and coordinating insurance, shipping and delivery. In addition, unlike the GLD, SLV or other paper investment instruments, physical metals are recognized all over the world, regardless of location, language or other potential barriers. Owning gold-based ETF stocks such as GLD is not the same as owning physical gold bars that you can touch and feel.
