5 Ways to Invest in Gold with ETFs

Analysts are closely watching the performance of gold, as many are anticipating the $1,000 mark, so which ETF should investors be ready to play?

From April 17 through May 26, gold bullion jumped from $ 867.90 to $953.90 an ounce — a 10% gain in less than six weeks, says Ron Rowland for iStock Analyst. Market watchers are thinking that gold may break the $1,000 mark sooner than later.

One of the best ways to access the physical metal without actual holding is through ETFs. There are other ways to access the metal, such as options trading or futures, but those are complicated. Going to a physical dealer and buying gold coins was another old way, but the holding is tricky and enough to make anyone paranoid. It all boils down to the fact that however you choose to play the metal, there are a variety of easy ways to do it with ETFs.

ETFs That Hold Bullion. By owning funds that hold gold bullion, you can follow along with the spot price of gold without having to deal with finding and paying for storage of the physical metal. Two funds that hold bullion are SPDR Gold Shares (GLD) and iShares COMEX Gold Trust (IAU).

ETFs That Hold Gold Futures. If you’d like to own gold futures instead, without the trouble of rolling them over or just the plain expense of futures investing, PowerShares DB Gold (DGL) is an option.

Play the People Who Mine the Gold. Instead of investing in the physical metal or futures, you can hold a basket of stocks representing the companies involved in the mining and processing of gold via the Market Vectors Gold Miners (GDX).

Hold a Diversified Basket of Precious Metals. As with any asset class, it can be hard to choose which commodity is going to outperform the rest. Why not diversify a little? PowerShares DB Precious Metals (DBP) holds both gold and silver futures, so you can capitalize on the moves of both metals.

Go Short. If you think gold is going to lose value or you want a short-term hedge in your portfolio, ProShares UltraShort Gold (GLL) may be an option if you’re aware of the risks. Remember that short and leveraged ETFs rebalance daily and are not intended for buy-and-hold use.

Comments

[goldrealmny:]

Every dollar that you invest in a precious metal ETF is a dollar that DOES NOT get invested into BULLION or MINING COMPANIES.

Think about it. These ETFs were a clever ploy to divert your money away from the items you really SHOULD buy. Were you gullible enough and foolish enough to believe that banksters would create a vehicle that would make investors rich off precious metals?!? Banksters HATE regular guys owning the REAL MONEY. They want you to own little pieces of paper that make you feel rich. THEY WANT THE GOOD STUFF ALL TO THEMSELVES. As a child would say - Duh!!!

Jun 08 04:31 PM

[YoYoMama:]

Geez, goldrealmny - get over yourself. Who appointed you the Gold God?

GGN is a CEF gold play for income investors. Be forewarned that it is trading high above the NAV right now.

Jun 09 09:59 AM

[5142152-337:]

goldealmny: I had to look TWICE that I didn't write your posts!!!

What the #$%^&*giving you the "thumbs down" are failing to see is the logical thinking of OWNING and HOLDING what you pay for. Its quite simple, really, as we both know. Too bad when OhBama decides to take that $$$ for his next trip, or to buy Michelle a DECENT wardrobe, they will be out there money. I don't feel sorry for them.

Hey Tom WHAT is so TRICKY about owning physical gold? Having a safe is all it takes. Some trick, huh? Rethink that one please.

Jun 09 01:02 PM

[goldrealmny:]

You don't even need a safe really. Gold is so compact it can be easily hidden. Use your imagination. And I don't mean burying it and making a treasure map. Think like Bob Villa. Just put it where no one would ever guess to look.

I could care less about all the "thumbs down". I am considerably richer than I was in October. I don't own any etfs. Those who don't buy a few thousand ozs of physical silver (a bare minimum if you have the means) and some gold too - they are too dumb to be helped.

Jun 10 03:52 AM