GDP Numbers Give Gold ETFs a Pop
October 29th 2010 at 11:00am by Tom Lydon
After a GDP report that many found lackluster, gold exchange traded funds (ETFs) got additional support from investors.
Overall, the economy grew by 2% for the third quarter, which is just about what analysts were anticipating. That slow growth and the prospect of yet more slow growth down the line, however, kept gold appealing for investors who seek it out as a safe haven, reports Andrea Tse for The Street. [Are Gold ETFs In A Bubble, Or Hot Streak?]
Murray Coleman for Barron’s notes a report by the World Gold Council found that investors bought 28.3 metric tons of gold in ETFs during the quarter which ended September. That’s pushed total holdings in gold ETFs to a record 2,070 tons. [4 Reasons Gold ETFs Are Still a Popular Bet.]
There are several ways to get exposure to gold – you can find them all in the ETF Analyzer.
- iShares COMEX Gold (NYSEArca: IAU) had the largest net inflows, according to the report. IAU slashed its fees this summer and investors have responded to the lower prices.
- SPDR Gold Shares (NYSEArca: GLD) saw net outflows of 15.7 tons, Coleman says.
- ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) had a net inflow of 9.6 tons for a total of 23.4 tons.
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.