The markets are bearing down on investors, and many are searching for a place to hide. Can gold exchange traded funds (ETFs) offer the safe haven that investors are craving?
In recent days, gold has continued its long-term advance to record high levels even as the U.S. dollar put in a rather sizeable five-and-a-half-month rally. Rising gold on a rising dollar tells us that there is something bigger than currency movements drawing investors to this traditional safe-haven asset, explains Michael Kahn for MarketWatch.
So far, long-term bull market signs are not a risk, so any short-term losses can be justified with long-term gains. SPDR Gold Shares (NYSEArca:GLD) has a similar trendline from its own 2008 low in the 116 area so that would be the place to start, says Kahn. [Gold Hits a New Milestone.]
For now, gold-related shares and probably more of a risk than the investment in the metal itself. For instance, Market Vectors Gold Miners ETF (NYSEArca: GDX) has lost more than two-thirds of its value compared with less than one-third for the GLD gold ETF.
Also, iShares COMEX Gold Trust (NYSEArca: IAU) is undergoing some changes. The provider has recently done a 10-for-one share split and they’ve updated the FAQ and fact sheet. [Why Gold is Getting Attention.]
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.