Since bottoming out in 2001, bullion has turned in a shining performance. Yesterday the POG close over 1000 with no signs of slowing down. As an individual asset class, Gold remained neglected. Most the major Wall Street house (if they did cover gold) lump it into either the basic materials sector (mining stocks) or in the (hard assets) category, which mostly covers commodities and real estate. The last few months things have changed as fund managers started piling into the shiny metal. Gold may be a perfect hedge against inflation. But what you are witnessing today is that gold is also a pure hedge against fear.
Here are some major Gold ETF’s and ETN’s I am following.
SPDR Gold Shares (NYSE: GLD) is the big hitter of all gold ETF’s. It tracks the performance of the price of Gold bullion. It trades over 16 million shares on an average day, but it traded over 43 million shares yesterday! WOW, a crowded trade??
Ultra Gold ProShares (NYSE: UGL) employs TWO-TIMES leverage on Gold. Be careful with this monster because it either doubles your pleasure or your pain.
My Favorite choice = Market Vectors Gold Miners ETF (AMEX: GDX) takes advantage with a basket of the AMEX Gold Miners index. The top 10 holdings of GDX are listed below and it’s hard not to take notice of the heavy concentration on global exposure in this industry.
* 5.28% AGNICO EAGLE MINES
* 5.06% ANGLOGOLD ASHANTI
* 12.28% BARRICK GOLD
* 4.55% ELDORADO GOLD CORP
* 4.39% GOLD FIELDS LTD ADS
* 10.01% GOLDCORP INC
* 5.07% KINROSS GOLD CORP
* 8.44% NEWMONT MINING
* 5.57% Randgold Resources Limited
* 4.4% YAMANA GOLD
