The Journal‘s Tom Lauricella recently took a look at whether investors should own gold stocks or ETFs that track the price of gold.
Since gold miners have leveraged exposure to the price of gold, gold mining stocks tend to be more volatile than the price of the metal. Gold stocks are also subject to other risks such as production delays or being swept up in a broader market move. For example, at the height of the financial panic, the SPDR Gold Shares (GLD) was down 21% while the average precious metals stock fund lost 52%.
In addition to GLD, Lauricella also mentions the iShares Comex Gold Trust (IAU) as an alternative way to gain exposure to the price of gold.