ETFs Have Been A Tremendous Catalyst For Swelling Gold Demand

got-gold“Exchange-traded funds (ETFs) have been a tremendous catalyst for swelling gold demand,” said Peter Krauth, a Money Morning contributing editor who is also the editor of the Global Resource Alert trading service. Noting that the SPDR Gold Trust (GLD) – the largest physically backed ETF on the planet – is now the sixth-biggest holder of gold bullion in the world. The SPDR Gold Trust fund held 1,077.63 metric tons of gold totaling more than $34 billion in value as of yesterday, according to its Web site.

“Indeed, the fund’s influence on the market is such that it actually seems as if every year or so it moves up past year another nation in the global rankings of gold-bullion holders,” said Krauth.  “Buying the SPDR Gold Shares is one way to get in on the gold rush. The fund’s price fluctuates in concert with the price of gold and it’s more convenient than buying gold bars directly,”  Jason Simpkins Reports From NuWire Investor.

“For investors who are looking to hedge against the enormous inflationary pressures that are believed to be filtering through the U.S. economy, buying stakes in gold miners is another potential strategy to follow.  In this case, the Market Vectors Gold Miners ETF (GDX) – composed chiefly of major gold miners – offers both company and geographic diversification, while including substantial leverage to the price of gold. Market Vectors is based on the AMEX Gold BUGS Index (HUI), which represents a portfolio of 15 major gold mining companies that do not hedge their gold production beyond a year and a half,”  Simpkins Reports.

Here’s some details on Gold ETF’s below:

The investment (GLD) seeks to strive to reflect the performance of the price of gold bullion, less the Trusts 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)  
 
Company Symbol % Assets
AGNICO EAGLE MINES (AEM) 4.58
ANGLOGOLD ASHANTI LT (AU) 4.93
BARRICK GOLD CP (ABX) 10.93
Buenaventura Mining Company Inc. ADR N/A 4.93
GOLDCORP INC COM NPV (GG) 9.61
IAMGOLD CORP COM NPV (IAG) 4.84
Kinross Gold Corporation N/A 4.61
NEWMONT MIN CP (HLDG (NEM) 7.86
Randgold Resources Limited (GOLD) 5.27
YAMANA GOLD INC COM NPV (AUY) 4.72

 

GET A FREE TREND ANALYSIS  FOR ANY ETF HERE!


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