The Case for Gold ETFs

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 |  Includes: DGL, DGP, DZZ, EMT, GDX, GDXJ, GLD, GLL, GOLD, IAU, SGOL, UGL, XME
by: Tom Lydon

Gold ETFs serve several functions in both good times and bad. These days, we’re seeing it primarily working as a safe haven for investors. If you’re among the worried, you have a number of options when it comes to getting exposure.

Gold has been on a hot streak, and that may not change anytime soon, according to some.

Asher Hawkins for Financial Edge reports that economic uncertainty will continue to make gold a hot investment, with SPDR Gold Shares (NYSEArca: GLD) among the most popular means of participating. Likewise, gold’s surge to a record sparked speculation that central banks may be stepping up purchases of the precious metal.

Carolyn Cui and Mark Gongloff for The Wall Street Journal report that investors in metals and currency markets have been on alert for any sign that the world’s central banks, and China in particular, are shifting reserves out of the euro and into gold.

A few sings that gold may becoming hot again:

  • Central Banks have been showing signs lately that they might be shifting out of euros and into gold.
  • Russia’s central bank, one of the world’s largest holders of foreign-currency reserves, trimmed its currency reserves by $6.6 billion in May, according to data on the bank’s Web site, but increased its gold reserves by $1.8 billion.
  • An Iranian news agency said the country had begun switching $54 billion of its foreign-currency reserves into gold and dollars, a report that was unconfirmed.

Although there are those who feel that physical investment is the only way to go when it comes to investing in gold, ETFs do simplify things some. They eliminate the hassle of finding storage yourself, rolling over futures contracts and single-stock picking. As gold investing has increased in popularity, so have the available options.

For more stories about gold, visit our gold category.

  • iShares COMEX Gold (NYSEArca: IAU)
  • ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
  • SPDR S&P Metals & Mining (NYSEArca: XME)
  • Market Vectors Gold Miners (NYSEArca: GDX)
  • Market Vectors Junior Gold Miners (NYSEArca: GDXJ)
  • EGS DJ Emerging Markets Metals & Mining Titans (NYSEArca: EMT)
  • PowerShares DB Gold Fund ETF (NYSEArca: DGL)
  • ProShares UltraShort Gold (NYSEArca: GLL)
  • Ultra Gold ETF (NYSEArca: UGL)
  • PowerShares DB Gold Short ETN (NYSEArca: DGZ)
  • PowerShares DB Gold Double Long ETN (NYSEArca: DGP)
  • PowerShares DB Gold Double Short ETN (NYSEArca: DZZ)

Tisha Guerrero contributed to this article.