One of the advantages of gold exchange traded fund (ETF) investments and other precious metal ETFs is that they are a strong hedge against inflation. Another strong push to invest in gold comes from the supply and demand of it. This case is especially true in India (which holds one-fifth of the world’s gold supply) and China (the world’s 10th largest gold holder) where demand for gold has been climbing. India and China also happen to be two of the most populated countries. (Nice coincidence, don’t you think?) If demand increases faster than supply, then theoretically the price of gold will climb, Gary Gordon of ETF Expert says.
Some gold ETFs to consider adding to your portfolio include:
- streetTRACKS Gold Shares (GLD)
GLD holds gold bullion; it’s up 3.4% for the year. - iShares COMEX Gold Trust (IAU)
IAU holds gold bullion; it’s up 2.9% for the year. - PowerShares DB Gold (DGL)
Launched in January of this year, DGL invests in future contracts of gold; it’s down 1.1% for the last three months. - PowerShares DB Precious Metals (DBP)
Launched in January of this year, DBP invests in future contracts of gold and silver; it’s down 2.1% for the last three months.
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.