Gold ETFs Are Entering a Seasonally Strong Period

For example, GLD attracted $297 million in net inflows so far this month as volatility spiked and equity markets pulled back.

Looking Ahead to Gold Prices in 2019

Looking ahead, Milling-Stanley projects gold prices to remain within the broad range established since Spring 2013, between $1,150 and $1,350, and the precious metal could even challenge the overhead resistance above $1,350 in 2019.

Along with GLD, ETF investors now have many other ways to diversify their portfolios with gold exposure. For example, SPDR Gold MiniShares Trust (NYSEArca: GLDM) is a cheap way to access gold. At launch, GLDM was the gold ETF with the lowest expense ratio of 18bps. Milling-Stanley argued that retail investors also often prefer a ETFs with a lower share price, which is why GLDM was priced at launch to be equivalent to one hundredth of an ounce of gold, as opposed to GLD at one-tenth of an ounce. GLDM can be attractive for long-term buy and hold investors whom do not wish to take advantage of GLD’s trading efficiencies and optionality.

Furthermore, the SPDR Long Dollar Gold Trust (NYSEArca: GLDW) incorporates a currency swap mechanism to effectively gain exposure to gold paid for in foreign currencies, rather than in dollars. Investors can look to GLDW in environment where the dollar is strengthening.

For more information on the gold market, visit our gold category.