Gold ETFs Hot as Spot Hits $600
April 6th at 3:31pm by Tom Lydon
Gold futures climbed above $600 an ounce today for the first time in 25 years. Individual investors can hold gold, just as the institutional investors, through exchange traded funds. The two gold ETFs available are streetTRACKS Gold Shares (GLD) and iShares COMEX Gold Trust (IAU), which are both up 14% this year and rose more than 1% today.
There are several explanations as to why gold continues to rise. One is that the strength in other commodity prices, such as oil and silver, pushed up gold prices. Some believe energy prices will cause inflation and inflation boosts precious metals. Others say the rise is linked more to a weakening dollar, and gold is an alternative investment to the dollar.
The chart below shows ETFs GLD and IAU rising over the past 6 months.
