Gold has shined in today’s volatile market as global monetary policies shifted and economic risks heightened. But, are there other factors besides the perception that gold is a safe haven asset which may be raising gold’s performance?
On the upcoming webcast, Why Gold is Shining Bright This Quarter, George Milling–Stanley, Chief Gold Strategist, State Street Global Advisors; and Juan Carlos Artigas, Director, Investment Research, World Gold Council, will help financial advisors better understand the drivers behind gold’s recent performance and some of the potential, growing benefits of incorporating gold in an investor’s portfolio mix of traditional stocks and bonds.
ETF investors who are interested in gaining exposure to the gold markets now have a number of options to choose from. For example, the SPDR Gold Shares (NYSEArca: GLD), the most liquid and largest physically backed gold-related ETF on the market, has been the go-to ETF option for gold exposure.
Investors have looked to GLD as a quick and easy way to gain exposure to gold price movements as they hedge against market risks, help protect their purchasing power in times of inflationary pressures or capitalize on increasing demand from the emerging markets with a growing middle-income class. In the current environment of ongoing uncertainties and global central banks cutting interest rates to bolster growth, many are turning back to physical gold as a way to safeguard their wealth and purchasing power.
The World Gold Council and State Street Global Advisors also expanded on the gold ETF theme with the launch of a relatively new offering that provides the cheapest exposure along with a low share price to those investors seeking exposure to the yellow precious metal. The SPDR Gold MiniShares Trust (NYSEArca: GLDM) has a 0.18% expense ratio and was initially listed at a per-share trading price of 1/100th of an ounce of gold, as represented by the LBMA Gold Price PM (USD). The low cost gold ETF has quickly been attracting attention from buy-and-hold investors who are interested in the long-term benefits of incorporating a cheap gold investment in a diversified portfolio
GLDM’s strategy is identical to GLD – both are physically backed by gold bullion and are structured as grantor trusts. However, GLD’s price was 1/10th the price of gold in ounces at its inception while the Gold MiniShares ETF was priced at 1/100th the price of gold in ounces.
“GLDM has a low yearly management fee,” said Greg Collett, Director of Investment Products at the World Gold Council. “It was squarely-aimed at the long-term holding, buy-and-hold gold investor.”
Financial advisors who are interested in learning more about the gold markets can register for the Wednesday, October 2 webcast here.