ETF Gold Facts
Exchange Traded Funds are baskets of stocks that attempt to reflect overall price performance of an industry or sector. Gold ETFs track the price performance of mainly gold mining stocks. Gold prices set record levels during the 2009 recession.
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Top ETF
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SPDR Gold Shares (GLD) is the largest gold ETF. The fund manager of GLD is State Street Global Markets, LLC.
Other ETFs
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Other popular gold ETFs include iShares COMEX Gold Trust (IAU), Gold Miners (GDX), ProShares Ultra Gold (UGL), PowerShares DB Gold Fund (DGL) and PowerShares DB Gold Double Long ETN (DGP). A new gold ETF emerged in 2009 called Market Vectors Junior Gold Miners (GDXJ).
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Top Miner
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The largest gold mining company in North America is Barrick Gold (ABX). It has the largest production and market capitalization in the gold mining industry.
Price History
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Gold ETFs and stocks have a tendency to outperform the movement in gold prices per ounce. During the market crash of 2008, prices for precious metals, including gold, fell with the entire market. But from March 2009 through the rest of the year gold made a substantial turnaround of more than 25 percent. Gold price action tends to be volatile.
Inverse of Dollar
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Throughout 2009, gold prices tended to move up when the value of the dollar fell. When the dollar went up, gold prices tended to pull back.
Record High
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The price of gold continued to hit record levels in 2009, surpassing $1,100 per ounce in November. GLD hit a record as well, surpassing $110.
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References
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- Photo Credit Image by Flickr.com, courtesy of Chubby Chandru
