The Easy Way To Invest In Gold, Buy the ETF

The price of gold has recently broken out to new highs, and the shiny metal is once again in the spotlight. Trading over $700 it can be confusing as a new investor to think about investing in the precious metal. Do you buy coins, jewelry, what? The answer is simple, to invest in gold, just buy the Streettracks Gold Trust ETF.

What is a ETF?

A ETF, or Exchange Traded Fund, is a security that tracks an index, group of stocks, commodity, etc. but is traded like a stock on a stock exchange. ETF trading has become extremely popular over the years and is a great alternative to investing in mutual funds. With no yearly fees and the ability to sell out at any time, ETFs are a safe and easy long term investment.

The Streettracks Gold Trust

The Streettracks Gold Trust trades under stock ticker symbol GLD, and is an exchange traded fund seeking performance corresponding to the price of the gold bullion. Simply put, it follows the price of Gold. Launched in late 2004, just recently GLD broke to new all time highs as Gold has once again surged in price.

Below is a weekly chart of GLD (Note: if you have never seen a chart before read my post on how to read stock charts)

Streettracks Gold Trust ETF New Highs

As you can see above GLD has recently broken to new highs, and today is trading above $73 per share.

The Bottom Line

Gold is going higher, and the best way to play gold is through buying an exchange traded fund, or ETF. The Streettracks Gold Trust trades under symbol GLD and is a great way to play gold as it continues to climb higher in price. Investing in GLD means you have invested in gold.

Comments

  1. Posted by Mikel on September 20, 2007 at 1:06 pm

    Why is it that GLD can soar, while the gold developers, even with decent fundamentals can lose money. Take a look at IAG for example....

  2. Posted by Blain on September 20, 2007 at 1:13 pm

    The group overall is doing exceptional actually, you have just missed some of the bigger gainers. Give a look at SA, BVN (just broke out again), GOLD, and AEM for example. All are in great shape :twisted:

  3. Posted by Mikel on September 24, 2007 at 9:57 am

    I live very close to the kitco head office. I walk by there often and wonder about how hard it would be to go and buy a load of bullion... ;0

  4. Posted by Susanna K. Hutcheson on February 3, 2008 at 1:25 pm

    Are you all aware that you will pay a whopping 28% on your GLD ETF when you sell it? Even after 1 year. It's not cap gains tax but collectibles tax. That can easily wipe out your gains and then some.

    Gold coins have considerable advantage.

Trackbacks

  1. [...] you utilize ETFs? Now more than ever etfs are hotter than hot. Off the top of my head you have the gold etf, south korea etf, which have both been great successes. Even owning the QQQQ or SPY which tracks [...]

  2. [...] first mentioned Gold on this blog back in September and the best way to invest in Gold is with the Streettracks Gold Trust (GLD) which is an exchange traded fund that tracks the price of the gold bullion. Gold has only continued [...]

  3. [...] Streetracks Gold Trust, GLD is an ETF that tracks the price of the gold bullion. Over the last month and a half GLD has been [...]