High Gold Prices Has Attracted Investments Into Exchange-Traded Funds (ETFs)
“Gold prices surged to a record high at $1,043.45 an ounce on Tuesday as dollar weakness sparked buying of the precious metal as an alternative asset. The wider media coverage of high gold prices has also attracted investments into exchange-traded funds (ETFs), which issue securities backed by physical metal and allow people to gain exposure to the underlying gold prices without taking delivery of the metal itself,” Reuters Reports.
“Gold held in New York’s SPDR Gold Trust (GLD), the world’s largest gold-backed ETF, rose to a record high of 1,134.03 tonnes in June. The ETF’s holdings are equivalent to nearly half global annual mine supply, and are worth more than $37 billion at today’s prices. Other gold ETFs include iShares COMEX Gold Trust, ETF Securities’ Gold Bullion Securities and ETFS Physical Gold, and Zurich Cantonal Bank’s Physical Gold,” Reuters Reports.
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We have listed the profiles of the Gold ETF’s mentioned:
The objective (IAU) of the trust is for the value of its shares to reflect, at any given time, the price of gold owned by the trust at that time, less the trust’s expenses and liabilities. The trust is not actively managed. It receives gold deposited with it in exchange for the creation of baskets of iShares, sells gold as necessary to cover the trust’s liabilities, and delivers gold in exchange for baskets of iShares surrendered to it for redemption. The trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act.
The investment (GLD) seeks to replicate the performance, net of expenses, of the price of gold bullion. 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.
Gold Bullion Securities (GBS) are designed to offer investors a simple, cost-efficient and secure way to access the physical gold market. GBS is intended to provide investors with a return equivalent to movements in the gold spot price less fees.
ETFS Physical Gold (PHAU) (PHAU.L) are designed to offer investors a simple, cost-efficient and secure way to access the precious metals market. PHAU is intended to provide investors with a return equivalent to movements in the gold spot price less fees.
The ZKB Gold ETF (ZGLD.SW) only invests in physical gold. The currency class CHF reflects the value of around 100 grammes per unit, for the currency classes EUR and USD one share reflects the value of around 1 ounce gold. Investors can at any time request the sale of their units or payment in kind in physical gold. The ZKB Gold ETF is listed on the SIX Swiss Exchange and is traded on a daily basis. The listing guarantees the publication of current market data and cost transparency that benefits the investor.