Money Is Pouring Into The Gold ETF’s (GLD, GDX)
“Gold is popping, and is within spitting distance of the totally psychological $1,000 per oz. level. There are competing theories as to why. Some think the move foretells inflation or the collapse of the dollar. Others argue that it’s a hedge against a stock market re-collapse. One theory being discussed by traders is that money is coming out of certain failed commodity ETFs (like the double-leveraged oil ETF from Powershares that’s shutting down(DXO)) and being moved into gold ETFs. Whatever it is, the money pouring into gold ETFs is amazing,” Joe Weisenthal and Rory Maher Report From Business Insider.
“There are many changing dynamics in the precious metals market which suggest that we are about to witness exponential, upward moves in prices for gold and silver – which dwarf the gains these metals made when they more-than-tripled in vale,” Jeff Nielson From Stockhouse.
Here is a look at some details on the most common Gold related ETF’s below:
The investment (GLD) seeks to strive to reflect the performance of the price of gold bullion, less the Trustâs expenses. The Trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the Trust terminates and liquidates its assets, or as otherwise required by law or regulation. The Trust is not managed like an active investment vehicle, and it’s not registered as an investment company under the Investment Company Act of 1940.
The investment (GDX) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the AMEX Gold Miners index. The fund generally normally invests at least 80% of its total assets in common stocks and American depositary receipts (ADRs) of companies involved in the gold mining industry. The fund is nondiversified.
|TOP 10 HOLDINGS (GDX) ( 62.28% OF TOTAL ASSETS)|