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)
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.