Hello Gold - Welcome To The Thousand Dollar Club!
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Investors are scared, mad and running for gold. Today the precious metal topped the $1000 per ounce mark for the first time in nearly a year. Since the credit crisis intensified in late fall, gold has rocketed over 40% from its consolidated price of $700.
Humans have been using gold as an investment and currency for thousands of years and with little faith in the current financial system, gold is being seen as a 'safe haven' again.
Many are getting exposure to gold through the ETFs: (GLD, GDX)
SPDR Gold Shares (NYSE: GLD) directly owns gold and closely mirrors the market price of the metal. The trust owns 33 million ounces of the yellow stuff.
Another ETF to get gold exposure is Market Vectors Gold Miners ETF (NYSE: GDX). This ETF owns the gold miners and has been more volatile than GLD. With this ETF you have to rely on the companies management to profit from the rise in gold. Some of the companies owned include: Barrick Gold (NYSE: ABX), Goldcorp (NYSE: GG) Newmont Mining (NYSE: NEM), Kinross Gold (NYSE: KGC), and Yamana Gold (NYSE: AUY).
Gold is showing no signs of slowing down although many are telling investors to stay away and calling it a bubble.
With sovereign financial systems in chaos around the globe, they are being forced to prime the pump with more money and eventually it will flood out. It always does.
Many investors see gold as the only safe place. They will likely be proven right.
Humans have been using gold as an investment and currency for thousands of years and with little faith in the current financial system, gold is being seen as a 'safe haven' again.
Many are getting exposure to gold through the ETFs: (GLD, GDX)
SPDR Gold Shares (NYSE: GLD) directly owns gold and closely mirrors the market price of the metal. The trust owns 33 million ounces of the yellow stuff.
Another ETF to get gold exposure is Market Vectors Gold Miners ETF (NYSE: GDX). This ETF owns the gold miners and has been more volatile than GLD. With this ETF you have to rely on the companies management to profit from the rise in gold. Some of the companies owned include: Barrick Gold (NYSE: ABX), Goldcorp (NYSE: GG) Newmont Mining (NYSE: NEM), Kinross Gold (NYSE: KGC), and Yamana Gold (NYSE: AUY).
Gold is showing no signs of slowing down although many are telling investors to stay away and calling it a bubble.
With sovereign financial systems in chaos around the globe, they are being forced to prime the pump with more money and eventually it will flood out. It always does.
Many investors see gold as the only safe place. They will likely be proven right.
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