A Better Mousetrap for Gold

A recurring theme in my writing and in my portfolio management is to follow and explore new products as possible better mousetraps for existing stocks or funds I own. PowerShares may have come up with a better mousetrap for capturing the markets in gold, silver and oil.

Investors who use streetTRACKS Gold Trust(GLD Quote) or iShares Comex Gold Trust(IAU Quote) for either speculation or diversification may want to open themselves to the possibility that Deutsche Bank's PowerShares DB Gold(DGL Quote) could be an improvement on gold investing or trading.

DGL has some major structural differences from GLD and IAU. The latter two hold the physical metal in vaults. As the funds draw new assets, they buy more metal, and then store that as well. Some investors are comforted by the fact that the funds are backed by gold bars. ...