The world most traded gold ETF and the second most traded ETF, SPDR gold share, also known as SPDR Gold Trust and sometimes called Spiders, what is it? Does it worth investing my money in it?
First things first, what is an ETF? Exchange traded fund is an investment, traded just like stocks, traded in stock markets, but it’s backed by different assets, such as bonds, stocks or commodities, which gold is one of them.
SPDR Gold Trust, managed by the world’s second largest asset manager State Street Global Advisors, are “shares” in a gold bullion, 1/10 of an ounce to be precise. They report their current gold holdings in their website.
Now that we know what we are talking about, and probably you are another lover of this yellow metal just like myself, does it worth investing?
ETFs are designed to be investments. YES! Gold is the safe heaven we hedge our earnings with, but it’s not an investment for the short-term. Gold shows a great deal of stability and long-term value. But here is something, gold costs something between $1,400 and $1,500 per ounce. That’s the single unit of trading gold. While SPDR is 1/10 of that value, meaning it costs nothing more than $200 per share.
SPDR is the cheap alternative for investing in gold, with more flexibility as it is traded just like stocks, meaning that you will get management team and margined. Plus, it is traded three Asian markets besides New York Stock Exchange, the Singapore exchange, Tokyo and Hong Kong.
In these times of economic difficulties, gold is the best option to buy. SPDR will be a second only to physical gold investments.