Gold ETF Surges to a New Milestone
Not everyone is getting hurt in the market’s volatility. In fact, the world’s largest gold ETF is marking a major milestone as a result of it.
SPDR Gold Shares (GLD), the ETF backed by physical bullion, recently surpassed $50 billion in assets. Several factors have contributed to the spike in assets: concerns over the eurozone sovereign debt crisis, fears of a double-dip recession, possible inflation worries and a need for a general safe haven for assets.
Carolyn Cui for The Wall Street Journal reports that GLD now hoards a record total of 1,316.18 metric tons of gold, a level that rivals most of the world’s central banks. If GLD were a central bank, it would rank fifth – just below France and above China.
Gold prices are continuing their climb today on worries about a struggling labor market in the United States. Excluding today’s move, gold prices are up 13% so far this year and is near all-time highs.
The next step for GLD? It is on cue to become one of the largest ETFs ever, if assets can surpass the $75.6 billion mark.
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Tisha Guerrero contributed to this article.
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