Gold, Silver, Copper ETFs: Play the Olympic Medals

February 22nd at 11:00am by Tom Lydon

The cost of various metals has risen so much that the Vancouver Olympic’s gold medals are the highest they’ve been in recent years. One thing that doesn’t change: it’s easier to get metals exposure in exchange traded funds (ETFs) instead.

This year’s Olympic medals are some of the most expensive in recent history– that’s partly because metals prices have skyrocketed, and also in part because these medals are the heaviest in history, say Robert Hum and Ariel Nelson for CNBC. The price for one of these babies is $501 – not including the cost of crafting them.

Olympic gold medals actually contain more silver than gold. The International Olympic Committee requires gold medals to be made up of 92.5% silver and just 6 grams (0.19 troy ounces) of gold. Weighing between 500 grams to 576 grams (depending on the particular medal), the Vancouver medals are the heaviest medals ever, as they are over one pound. [Why Gold and Silver ETFs are All the Talk.]

Since the 2002 Olympics, gold futures have risen 258%, while silver futures have jumped 247%. Even since the start of the Beijing Olympics in 2008, gold prices have risen 27%. [China's Buying Spree.]

As the Olympics wind down, another source for gold and silver demand is poised to reveal itself: China may be toying with the idea of increasing it reserves of gold and silver. The country’s sovereign wealth fund recently invested in natural resource stocks and a government decree gave a nudge to Chinese citizens to buy silver, says Martin Hutchinson for NuWire Investor.

For more stories about precious metals, visit our precious metals category.