This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ETFs for a Gold Standard

NEW YORK ( TheStreet) -- I have consistently advised investors to gain exposure to gold through the use of various ETF products. With economic turmoil still raging across many regions of the globe, prices have risen to staggering all-time highs, making for an attractive destination for frightful investors.

With discussions heating up this week in light of the G20's meeting, the prospects for the yellow metal and the funds designed to track it appear promising.

In a Sunday opinion piece for the Financial Times, World Bank President Robert Zoellick proposed that leading world economies may want to consider using gold as a standard for their currency valuations in order to inject stability.

Zoellick's surprising suggestion is already drawing criticism, fanning the fiery debate over whether the world would benefit from a return to the gold standard. According to The Wall Street Journal, UBS has already called the idea of returning to the gold standard absurd.

The World Bank president's statement has fueled conversation but it is unclear if and how it will influence the discussions when the G20 representatives meet in Seoul, South Korea later this week. Still, it is interesting to consider which funds would benefit in the event that a gold standard is adapted.

Moving away from fiat currencies in favor of a gold standard would likely benefit gold-related investing products across the board. Today, investors can gain access to gold through exposure to bullion and miners.

Bullion-backed funds such as iShares Gold Trust (IAU) and SPDR Gold Shares (GLD) track their own respective stockpiles of physical gold held in vaults around the world. These funds are designed to rise and fall with the changes in the prices of the actual metal.

In the event that central banks around the world agree to adapt a gold standard, they will have to increase their stockpiles of the metal. This uptick in demand would, in turn, drive prices higher, benefiting IAU, GLD and other products boasting exposure to physical gold bars and coins.

If a gold standard is implemented and central bank demand for gold takes off, companies such as Barrick Gold (ABX), Gold Fields (GFI) and Goldcorp (GG) which are responsible for unearthing the commodity will see a lift as well, benefiting from rising prices.

A number of ETFs dedicate their portfolios to companies in this market space. The two most popular products which investors will want to keep an eye on will be the Market Vectors Gold Miners ETF (GDX) and Market Vectors Junior Gold Miners ETF (GDXJ).
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.03 0.00%
FB $105.41 0.00%
GOOG $748.15 0.00%
TSLA $229.64 0.00%
YHOO $33.16 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs