The New Rush for Gold

Investor interest in gold has lead the price of the precious metal and related ETFs to new highs.

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The largest gold ETF, SPDR Gold Shares (GLD), is up 35% on the year with the latest up-leg beginning in mid-August.  GLD holdings now stand at 1,114 metric tons, the highest level since early July.

Gold’s strength is mainly a result of a volatile and weakening dollar.  Some investment managers also point to concerns about the strength of other major currencies such as the Euro and Yen as a reason to hold gold.

Another recent development is the buying of gold by India’s central bank – see the WSJ story Central Banks Join a New Gold Rush.  Over the past several years, most central banks have been net sellers of gold.

For more ETF investing choices, see the ETF Directory for a complete list of Commodity ETFs or see theInvestor Center case study – Investing in Gold with ETFs.