“Gold has certainly received a lot more attention from investors since the beginning of 2009. Last Wednesday, with gold near its high for 2010, precious metals consultancy GFMS said in its annual report that the market “has moved out of kilter with its underlying fundamentals.” George Soros, the wildly successful speculator, went as far as to call gold “the ultimate bubble” at Davos in January. But talk of a gold bubble is nonsense, and here’s why,” Alex Dumortier Reports From The Money Times. 

Dumortier goes on to say, “In February, the Wall Street Journal reported that hedge fund manager John Paulson had only raised $90 million for a dedicated gold fund that he launched at the beginning of the year — much less than the $250 million of his own wealth he’s allocated to the fund. Paulson famously made cumulative gains of $20 billion in 2007 and 2008 with a macro-themed bet against subprime and financials. When an investor with Paulson’s stature and recent track record can’t quickly crack $100 million for a new gold-oriented fund, investors clearly aren’t falling over themselves to own gold. Paulson already had a significant allocation to gold-related investments prior to the new fund, including positions in the SPDR Gold Trust ETF (NYSE: GLD) and gold miners Anglogold Ashanti (NYSE: AU), Gold Fields (NYSE: GFI), and Kinross Gold (NYSE: KGC). The tepid reception for Paulson’s new fund is anecdotal evidence against a gold bubble, but there is more evidence against the bubble hypothesis.” 

“Here are some elements that “bubble-spotters” may be overlooking: Gold isn’t even halfway to its all-time high price: Although gold achieved a nominal all-time high price of $1,226 per ounce in December 2009, it is still well below its 1980 price in real terms. Adjusted for inflation, the 1980 high of $873 per ounce is equivalent to over $2,200 today. I have no idea where gold will trade next week, next month or even next year. However, I’m pretty confident that while the precious metal may no longer be a contrarian play, neither is it in bubble territory. Investors need not fear owning the yellow metal: With gold and the S&P 500 both trading near 1,200, I’d rather to be overweight the SPDR Gold Trust ETF (NYSE: GLD) than the SPDR S&P 500 ETF (NYSE: SPY). (Let me be clear: “Overweight” and “underweight” are defined against benchmark weights — I’m not implying that one’s allocation to gold should exceed one’s allocation to stocks.)” Dumortier Reports. 

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Investors have turned to gold ETFs as a safe haven during the recent stock market turmoil.  They offer a great way to protect you against risk in your portfolio during uncertain times. We have put together some other ETF options for your viewing below:       

LONG:       

The investment SPDR Gold ETF (NYSE: 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.       

The investment ETF (NYSE: 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.       

The Funds ETF (NYSE: GDXJ) investment objective is to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Junior Gold Miners Index (the “Junior Gold Miners Index”). For a further description of the Junior Gold Miners Index, see “Junior Gold Miners Index.”       

The objective of ETF (NYSE: SGOL) the newly listed shares is to reflect the performance of the price of Gold bullion, less the Trust’s operating expenses. The Trust is open ended and is designed for investors who want a cost-effective(1) and convenient(2) way to invest in Gold as well as diversify their Gold holdings.       

The investment ETF (NYSE: UGL) will seek to replicate, net of expenses, twice the performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics twice the return of the index. It may employ leveraged investment techniques in seeking its investment objective.       

The investment ETF (NYSE: DGL) seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Liquid Commodity Index – Optimum Yield Gold Excess Return. The index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold.       

The investment ETF (NYSE: DGP) seeks to replicate, net of expenses, twice the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.       

The objective ETF (NYSE: 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.       

SHORT:       

The investment ETF (NYSE: DZZ) seeks to replicate, net of expenses, twice the inverse of the daily performance of the Deutsche Bank Liquid Commodity index – Optimum Yield Gold Excess Return. The index is intended to reflect changes in the market value of certain gold futures contracts and is comprised of a single unfunded gold futures contract.       

The investment ETF (NYSE: GLL) will seek to replicate, net of expenses, twice the inverse daily performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics inverse to the index. It may employ leveraged investment techniques in seeking its investment objective.

NYSE:GLD, SPY