While Gold and ETFs Sink, Some Analysts Call a Bottom

One example is SPDR Gold Shares (GLD), the most widely traded gold fund. The world reserves up to 140,000 tonnes, and the liquidity in this fund is unbeatable. Each share in GLD represents one-tenth of an ounce of gold meaning only a small amount of money can give you gold exposure.

Despite the tax issues that are involved, we think ETFs can’t be beat – especially when it comes to dealing in precious metals. Futures are complicated and not for the average investor to mess around with, which is part of the reason ETFs have become so popular with individual investors to begin with. One has to admit: ETFs make life a lot easier.

GLD is down 11.2% year-to-date, and down 9.2% in the last month.

Other gold ETFs:

• iShares COMEX Gold Trust (IAU): down 11.5% year-to-date; down 9.5% in the last month
• PowerShares DB Gold (DGL): down 12.9% year-to-date; down 9.4% in the last month