ETF Investors Going for Gold
There's gold on Wall Street -- at least for ETF investors.
Traders awoke Thursday to find a new gold-backed security, StreetTracks Gold (GLD), trading on the New York Stock Exchange under symbol GLD.
The exchange-traded fund is sponsored by a unit of the World Gold Council. It enables investors to participate in the gold bullion market, with each share representing one-tenth of an ounce of gold. Boston-based State Street (STT) is the marketing agent behind the 2.3-million-share initial public offering.
StreetTracks Gold shares traded recently at $44.22 a share. Spot gold last changed hands at $442.30 an ounce, not far from a fresh multiyear high of $445.90 set on Wednesday.The StreetTracks Gold ETF is the first of its kind in the U.S. Gold ETFs have already been listed in England, Australia and South Africa. State Street rival Barclays (BCS) is currently awaiting Securities and Exchange Commission approval to launch its own gold ETF on the American Stock Exchange. Analysts say this morning's successful launch of a gold ETF in the U.S. could open the door for additional ETFs linked to commodities, including oil. "I expect this to be a blockbuster, because a lot of institutional investors who might not have been mandated to own gold other than mining stocks will finally be able to get directly involved in the gold market," said Michael Porter, ETF analyst with Lipper. "It should definitely pave the way for other commodity-based ETFs."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV