For a wide variety of reasons, gold is an investment that generates sharp emotions from investors who usually fall squarely on either side of a clearly defined love-hate divide. On one side, you have investors like Warren Buffett who say gold "just sits there and you hope somebody pays you more for it". On the other side, you have individuals like Peter Schiff who recently said, "If I'm right that gold is still grossly undervalued, then this might be the beginning of the biggest rally we've yet seen". At The ETF Store, we tend to fall somewhere in between on the love-hate spectrum. We certainly don't think investors should turn their noses up at gold as if it's some sort of unworthy investment, but we also don't view gold as an exciting, speculative day trade. Instead, we believe a reasonable allocation to gold in your investment portfolio makes sense as a hedge, or diversifier. On our most recent radio broadcast, we explained the role of gold in your investment portfolio and were also joined by Juan Carlos Artigas, Head of Investment Research at the World Gold Council. Widely respected for his deep knowledge of the gold market, Juan Carlos offered his thoughts on the most recent Gold Demand Trends report, gold ETFs, and the investment case for gold moving forward.
In our weekly ETF Spotlight segment, we examined the largest, physically-backed gold ETF - the SPDR Gold Shares (ticker GLD). With over $40 billion invested in it, GLD offers a highly liquid, cost effective way to gain exposure to gold in your portfolio. And for investors still wondering whether an ETF like GLD actually owns the physical gold they say they do, we took a look back at an excellent CNBC piece on just this subject. Learn more about GLD by visiting www.etfbuzz.com.