Maniac in Motion

Gold's Run: Increased Demand, or ETF Proliferation?

The GLD ETF can be viewed as an awesome phenomenon because it helps diversify a portfolio with a commodity that the typical investor would not own otherwise. The value placed on it (not necessarily only in the US) across global banks like the Netherlands, China and Japan help maintain a strong support level, and in the long-run the ETF can help maintain that support. However, it's short-run parabolic momentum can also add significant volatility in the future to a commodity that was previously viewed as stable because of its liquidity.