As the price of gold approaches $700, there are exchange traded funds (ETFs) that focus on gold. streetTRACKS Gold Shares (GLD) and iShares Comex Gold Trust (IAU) follow the price of gold, where PowerShares DB Gold (DGL) tracks gold futures. There is also Market Vectors Gold Miners (GDX), which follows the gold mining companies. As with any investment decision, it is important to know what you are buying, know the risks, make sure it fits into your investment goal and have a stop-loss in place.
Sean Brodrick of MoneyandMarkets.com has a few reasons why the price of gold may continue to be a source of strength:
- China can’t get enough gold.
- Two India Gold ETFs are launching.
- The existing gold ETFs are pumping up demand.
- Investment demand is rising.
- Central bank gold stockpiles have dropped to a 60-year low.
- Miners can’t find new deposits quick enough.
- Gold charts show opportunity.
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.