Gold ETF Trading Follow

But how those investors are buying gold is becoming increasingly different. More and more, investors aren’t buying physical pieces of gold – which become difficult to manage when gold sells for over $1,500 per ounce. Instead, they’re turning to gold ETFs, which allow investors to gain access to the big run-up in gold, but at a much more reasonable price. In effect, for the first time ever, buying commodities like gold is as user-friendly as buying stocks. That has allowed an enormous influx of investors into the gold market. Currently, total assets in the largest gold ETF on the market – the SPDR Gold Shares (NYSE: GLD) is close to $56 billion.

Each GLD shareholder only receives a small piece of gold from the fund. According to the fund’s prospectus, each share of the SPDR Gold ETF represents just one-tenth of an ounce of gold. Other gold ETFs offer an even smaller slice of the pie – each share of the iShares Gold ETF (NYSE: IAU), for example, equals one-hundredth of an ounce of gold.

Call them the great equalizer. Gold ETFs give regular investors a chance to rub elbows – and gold coins – with the commodity investing elite. That alone makes gold ETFs a great way of breaking into the gold market. If the dollar continues to decline, and inflation keeps gathering momentum, gold may not only be one of the most profitable investments you can make, it may be one of the safest investments you can make.