So far this year, gold ETFs have been among the most popular trades. Physically backed gold ETFs saw bullion holdings increase to 1,822.3 metric tons, the most since December 2013, Bloomberg reported.
Fueling the gold bet, the global zero or negative interest rate policies have pushed investors toward the hard asset as a better store of wealth, with demand surging to the second-highest level ever in the first quarter, according to the World Gold Council. Moreover, lingering global volatility has also helped support gold as a safe-haven asset.
“Firstly, the negative interest rate environment and quantitative-easing policies are reducing the pool of suitable investment options, and making gold less costly to hold,” Bernard Aw, a strategist at IG Asia Pte, told Bloomberg, adding that while there may be more U.S. rate hikes in the pipeline, prevailing rates remain very low. “Second, lingering fears of competitive currency devaluations and potentially fresh bouts of market volatility encourage safe-haven demand.”
Investors who are interested in following the gold market have a number exchange traded products to choose from.
- SPDR Gold Shares (NYSEArca: GLD)
- iShares Gold Trust (NYSEArca: IAU)
- ETFS Physical Swiss Gold Shares ETF (NYSEArca: SGOL)
- PowerShares DB Gold Fund (NYSEArca: DGL)
- Van Eck Merk Gold Trust (NYSE Arca: OUNZ)
- Credit Suisse Gold Shares Covered Call ETN (Nasdaq: GLDI)
- AdvisorShares Gartman Gold/Yen ETF (NYSEArca: GYEN)
- ETRACS CMCI Gold ETN (NYSEArca: UBG)
- AdvisorShares Gartman Gold/Euro ETF (NYSEArca: GEUR)
Leveraged/inverse gold ETPs:
- Powershares DB Gold Double Long ETN (NYSEArca: DGP)
- ProShares Ultra Gold ETF (NYSEArca: UGL)
- ProShares UltraShort Gold ETF (NYSEArca: GLL)
- VelocityShares 3x Long Gold ETN (NYSEArca: UGLD)
- Powershares DB Gold Double Short ETN (NYSEArca: DZZ)
- Powershares DB Gold Short ETN (NYSEArca: DGZ)
- VelocityShares 3x Inverse Gold ETN (NYSEArca: DGLD)
For more information on gold, visit our gold category.