As the financial roller coaster rolls on, gold exchange traded funds (ETFs) are pulling in new fans at a historical rate.

Investors seek out the metal as a safe haven, because it always has value, no matter where in the world you are. You can store it, take it home, or even better, buy an ETF that conveniently holds the metal for you. This means you don’t have to worry about insuring the bullion or paying for storage space.

Make no mistake, though: the price can be volatile, says Kara Gammell for the Telegraph. This can make it challenging to make a profit if you hold gold for just a short time. One year ago, the metal was $667 an ounce, then peaked above $1,000 in March, and now it’s back at $828.

Gold is trading lower today, as investors did some profit-taking after the metal hit nine-day highs yesterday, reports Jan Harvey for Reuters.

Gold has value as a financial instrument, but its price is supported by fundamentals. South Africa, the world’s second largest gold producer after China, saw its gold output fall 23.2% in August after power problems that have been plaguing the country all year.

Silver is trading lower today, while platinum and palladium have moved slightly higher. One analyst says platinum group metals are trading more as industrial metals than investor ones.

  • iShares COMEX Gold Trust (IAU), up 8.9% year-to-date
  • SPDR Gold Shares (GLD), up 8.4% year-to-date

Gold Exchange Traded Funds (ETFs)

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.