ETF Spotlight: SPDR Gold Shares (GLD)

GLD’s objective is to reflect the performance of the price of gold bullion, minus expenses.

What’s Good

Gold ETFs simplify the process of owning gold – there’s no need to deal with rolling futures contracts, taking delivery or paying for the storage yourself
The gold market is affected by a whole host of factors, including: new gold discoveries, inflation, electronics demand, the U.S. dollar, Indian demand and the Chinese New Year
Gold volatility lower than you may believe, according to the World Gold Council; during the financial crisis, gold was less volatile than the MSCI World Index, S&P 500, Oil and the GSCI Index
Gold has a reason to be in many portfolios – it’s an excellent hedge against inflation, has relatively low volatility, it’s a hedge against a weakening dollar and it’s a safe haven in tumultuous times

The Latest News

Gold and related exchange traded funds (ETFs) may soon be in high demand as the holiday gift-giving season is edging ever closer
Historically, September has been the most auspicious time for gold in month-over-month price appreciation with an average 2.5% rise in gold prices in September from August, remarks Frank Holmes for GoldSeek
The most consistent correlation for gold is its opposite relation to the U.S. dollar. By examining data going back 20 years, the relationship holds nearly 70% of the time. The performance of gold stocks tends to outperform the overall market after the government engages in deficit spending, which would drive up inflation.

Why is gold attracting so much attention during this time of the year?

Post-monsoon wedding season in India and Diwali
Jewelry makers anticipating the Christmas shopping season in the United States
Ramadan, which ends in late September, is marked by a period of celebration and gift-giving
In China, there is a weeklong National Day and the run-up to the Chinese New Year

For more information on the shiny yellow stuff, visit our gold category.

Max Chen contributed to this article.