Not everyone is getting hurt in the market’s volatility. In fact, the world’s largest gold exchange traded fund (ETF) is marking a major milestone as a result of it.
SPDR Gold Shares (NYSEArca: GLD), the ETF backed by physical bullion, recently surpassed $50 billion in assets. Several factors have contributed to the spike in assets: concerns over the eurozone sovereign debt crisis, fears of a double-dip recession, possible inflation worries and a need for a general safe haven for assets. [Some of gold’s virtues.]
Carolyn Cui for The Wall Street Journal reports that GLD now hoards a record total of 1,316.18 metric tons of gold, a level that rivals most of the world’s central banks. If GLD were a central bank, it would rank fifth – just below France and above China.
Gold prices are continuing their climb today on worries about a struggling labor market in the United States. Excluding today’s move, gold prices are up 13% so far this year and is near all-time highs.
The next step for GLD? It is on cue to become one of the largest ETFs ever, if assets can surpass the $75.6 billion mark. [The Silver ETF is Shining, Too.]
For more stories about gold, visit our gold category.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.