The Gold ETF: Maybe The Best Way To Own Gold



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Summary:
StreetTracks Gold Trust (symbol: GLD), makes purchasing gold just as easy as buying shares of Microsoft or Starbucks. In fact, it is so innovative and such a major advancement that it will dramatically change the way investors look at investing.

Here are some relevant facts about GLD'

  • The investment objective of the Trust is for the shares to reflect the performance of the price of gold bullion less the expenses of the Trust's operations.
    Article:

    Let's start off with the fundamental that you want to own gold. You want to own gold as a hedge headed for inflation. You want to own gold as a hedge up against a declining currency, like the U.S. dollar. And you want to own gold -- well, for the same reason you would make any investment -- in that the price is likely to go a lot higher in showing years.

    But how do you own gold? Until this year you had two material choices: You could own the metal or you could own shares of gold mining companies (for the purpose of this discussion I'm leaving out gold futures). The disadvantage of owning the metal is that it's not convenient. You have to store it and insure it. That's a pain. And the transaction costs can be high when you go to buy or sell it.

    The disadvantage of owning the shares of mining companies is that you own a stock. And you have all the risks that you would have in owning any stock. Management may make poor decisions. Increased operating costs could hurt earnings. The price of the stock could go down while the price of the metal goes higher, etc.

    There's a third way to own gold. And it may be the best way. StreetTracks Gold Trust (symbol: GLD), makes purchasing gold just as easy as buy shares of Microsoft or Starbucks. It's innovative and it offers a very liquid and cost-effective way to invest in an important resource that, until now, was not indwelling to individual investors. In fact, it is so innovative and such a major progressiveness that it will dramatically turn back the way investors look at investing.

    Here are some relevant facts any which way GLD…

  • The investment objective of the Trust is for the shares to reflect the performance of the price of gold nickel less the expenses of the Trust's operations. The shares are designed for investors who want a cost-effective and convenient way to invest in gold.

  • One unit (share) of GLD represents 1/10 of an ounce of gold. For example, if gold is at $470 an ounce, the shares will be priced at on the whole $47.

  • GLD trades on the New York Stock Exchange.

  • It trades at a very small premium or discount to gold at any given time -- usually less than 1%.

  • Expenses are low -- currently 0.4%

  • GLD is very liquid. There are 66,900,000 shares outstanding. ruck daily volume is in effect two million shares. luxuriousness are currently valued at $3,155,106,000. And that's ex post facto less than one year of trading.

    • The StreetTracks Gold Trust has been one of the most successful new financial vehicles ever launched. And for good reason -- GLD is a great way to buy and sell gold.

    Copyright 2005



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