The success of the gold ETFs has helped the physical gold market, as the demand for gold investing has increased, so has the price. Gregg Greenberg of reviews the one year anniversary for gold exchange traded funds.  StreetTracks Gold Shares ETF (GLD) hit the markets a year ago and iShares Comex Gold ETF (IAU) followed a few months later. 

Gold demand in Asia continues to be strong. Holiday shopping during years with improving economies also tend to show increased demand for the metal.

According to U.S. Global Investors, a continued strengthening of the dollar might pose a threat to gold prices.  However, since gold is seen as an asset "that holds its value in times of uncertainty" it is possible that events in France might send investors to purchase gold.


For full disclosure, I serve on the board of directors for both U.S. Global Investors and Rydex Investments.  Both companies have affiliated precious metal funds.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.