Gold’s history as a store of value goes back before the time of written records, but it’s still an asset/investment class of significant importance in today’s market. As a relatively scarce metal, gold has always been held in esteem and investors (as well as merchants and normal citizens) have long used gold as a means of safeguarding buying power or offsetting the risks of inflation and financial turbulence [for more gold news and analysis subscribe to our free newsletter].
The introduction of the SPDR Gold Trust (GLD) in 2004 forever changed the world of gold investing. The physically-backed ETF cracked the precious metals world wide open, as it now became possible for the average Joe to add gold exposure to their basket of holdings. Since debuting, GLD has amassed nearly $75 billion in total assets and is by far the most popular commodity ETF in the world. But for all of the attention this juggernaut attracts, investors often forget to look for alternative ways to gain the same exposure, especially given the controversy surrounding this product [for more gold news and analysis subscribe to our free newsletter].
Gold is one of the rarest metals in the world, and has a long history as a valuable and intensely sought-after element. The precious metal has served as the basis for physical currency for thousands of years, and many monetary systems throughout human history have utilized a gold standard that focused on the precious metal. Exploration and production of gold has become a major industry in regions that maintain significant deposits of the metal, and quests for gold have been the impetus of countless expeditions and discoveries [for more gold news and analysis subscribe to our free newsletter].
Get your foil hats and stock your bunker, the conspiracy theorists scored a recent victory when it comes to gold. For quite some time now, many have speculated that the amount of gold the U.S. claims to hold is a sham. It is already very likely that gold prices were manipulated alongside LIBOR, but recent news has only added fuel to the fire. Last week, a counterfeit gold bar was discovered in the U.S., as a 10 ounce gold bar sold in Manhattan was shown to be nothing more than tungsten, essentially erasing a near $18,000 purchase. Shortly thereafter, 10 more counterfeit bars were discovered [for more gold news and analysis subscribe to our free newsletter].
Gold is not only one of the most popular commodities in the world, but it is also one of the most widely traded financial instruments. Traders and investors utilize gold for its safe haven behaviors, its speculative power, and its high liquidity given its popularity. Some use futures contracts for gold exposure, while others prefer stocks. But recent years have seen exchange traded funds (ETFs) fall into the mix. These highly liquid and transparent assets have democratized gold investing so that even the smallest of investors can still maintain a healthy exposure to the precious metal. Below, we outline five facts about gold ETFs to help you get a better understanding of these products [see also Were Gold and Silver Manipulated Alongside LIBOR?].
It’s an argument that seems to have no end: is gold really overvalued? There are two distinct sides to this story, and the controversy has been heating up since the precious metal made its historical run in 2011. As a number of factors combined midway through last year, gold was able to soar to its highest price in history, briefly touching the $1,900/oz. mark. The hard asset had risen so quickly, that breaking through the $2,000 barrier seemed like a certainty for many. But what goes up must come down, and gold was no exception. With prices now stuck in a rut around $1,600/oz., investors are continuing the age old argument as to whether or not this commodity is worth its salt [see also Three Reasons Why Gold Is Overvalued].
This article originally appeared on ETFdb.com. Futures-based investing has long been a popular option for those looking to gain exposure to commodities that were otherwise difficult to reach. But with the introduction of ETFs came increased granularity in this investing segment, as there are now exchange traded products that offer exposure to a wide variety of commodities through a single ticker. This alleviates the stress and complexities that are involved with managing a futures account, while allowing investors to sometimes gain access to multiple commodity futures with just one fund. Still, for everything that ETFs have opened up for the everyday investor, these funds are by no means perfect.
Gold is one of the rarest metals in the world, and has a long history as a valuable and intensely sought-after element. Gold has served as the basis for physical currency for thousands of years, and many monetary systems throughout human history have utilized a gold standard that focused on the precious metal. Exploration and production of gold has become a major industry in regions that maintain significant deposits of the metal, and quests for gold have been the impetus of countless expeditions and discoveries. The price of the metal is widely followed by many investors, both sophisticated and simplistic. There are a number of different options for investing in gold, including buying up coins and bars of the product, exchange-traded futures contracts, stocks of companies engaged in the extraction and sale of the metal, and both physically-backed and futures-based exchange-traded products [see also The Guide To The Biggest Companies … See the full story here →