Investors Seeking Safety in Gold ETFs

With gold up 30% from last fall and no end in sight for the stream of bad economic news, analysts and investors are flocking to the precious metal.

The Financial Times Alice Ross writes in her column, Investors seek safe haven as good as gold, that Goldman Sachs, Merrill Lynch and UBS are all now predicting that the price of gold will hit at least $1,000 per ounce this year, up from the current levels of around $900.

UK investors are piling into ETFs that offer exposure to physical gold and gold miners. U.S. investors have access to similar ETFs.

The largest physical gold ETF available to U.S. investors is the SPDR Gold Shares (Ticker: GLD), an ETF that reflects the performance of the price of gold bullion less expenses. An ETF that uses futures contracts instead of holding physical gold is the DB Gold Fund (Ticker: DGL).

A U.S. ETF that tracks the Amex Gold Miners Index is the Market Vectors Gold Miners ETF (Ticker: GDX). The ETF invests in small, medium and large-cap gold mining companies.

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