Uncertainty Points to Gold

As the US continues to wrestle with fiscal policy and the EU debt crisis remains unresolved, investors have been returning to gold to ride out the uncertainty.

(click to expand)

SPDR Gold Shares (GLD) are up 7% in the past 3 months compared to a flat performance by stocks over the same time period.

The downside of gold as an investment is that it has carrying costs for storage and security without returning any income.

That said, gold has been a favorite asset for investors since the financial crisis began in 2008 rising nearly 50% while stocks have struggled to return to pre-crisis levels.

The Gold Shares represent fractional, undivided interests in gold bullion. The gold that underlies Gold Shares is held in the form of allocated 400 oz. London Good Delivery bars in the London vault of HSBC Bank USA, or in the vaults of sub-custodians.  The fund’s expense ratio is 0.40%.

Read more on investing in gold with ETFs.

– ETF MarketPro Staff
July 15, 2011