 | Having trouble viewing this issue? Click here | |||
| Home | Editors | Archives | Reports | |
It was starting to seem like the only gold anyone would want to hold this August was the kind you win at the Olympics. Ironically, down in Hong Kong, where the Beijing Olympiad's equestrian events are being run, a new gold ETF got off to the races in July.
In Hong Kong, the World Gold Council is behind July's launch of the first HK-listed gold ETF, the SPDR Gold Trust. Under the ticker 2840, it's set up to take advantage of increasing commodity interest on the part of Chinese and regional investors.
According to the Council's CEO James Burton, local demand for gold at the retail level doubled in 2007.
Then, like a busted leg on a thoroughbred, things took a turn for the worse in the middle of last month. Gold spot prices lost a fifth of their value in just a couple weeks, hurting gold-backed funds too.
But this Thursday, with US-Russia tension sending oil up over five bucks in a day, the New York-traded Gold Miners ETF (AMEX:GDX) and other gold-related plays got back on track.
International funds that hold physical gold are also set to enjoy a resurgence, confirming Gold World's standing global recommendation.
It's 3 times the size of the United States, but most investors are completely missing out on booming wealth in Africa. There are more opportunities to play Africa than ever before, and Global Growth Stocks subscribers are already taking advantage of Africa's rise. Learn more by signing up for GGS today!
The Hong Kong gold ETF's American counterpart, which shares the SPDR Gold Trust name (NYSE:GLD), has been listed on the New York Stock Exchange since 2004 and on the NYSE Arca options platform since 2007.
And in July of this year, the SPDR Gold Trust became the most actively traded call option on the Chicago Board Options Exchange, indicating massive interest. Once gold pulled back hard a couple of weeks into July, some started discounting that heavy forward contract volume as mere speculative activity...
Now it's apparent that a long position in physical gold is justified as a hedge against global instability and currency volatility.
More Gold ETFs on the Upswing
Taking a look at other international gold-backed ETFs, London's PHAU physical gold fund holds markers for bullion in the vaults of HSBC bank (NYSE:HSBC). HSBC, the world's largest bank by assets, is also where you can find the gold behind SPDR Gold Trust's international listings.
Tokyo, another key international market, also now has a SPDR Gold Shares listing.
Though we're long gold, we recognize that monitoring volatility is important for investors.
So we're happy that the CBOE now has a gold price volatility index, much like the famous VIX that investors worldwide refer to as the market's "fear gauge."
We're seeing more dramatic swings in daily gold prices these days, like Thursday's $20 jump. A couple of years ago, single-digit changes were much more common.
The launch of the Gold VIX (ticker:GVZ) confirms the rise in volatility, and we'll be keeping a close eye on it. For long-term investors, we say buying on weakness is a winning strategy.
You can learn more about the Gold VIX on the CBOE site, here: http://www.cboe.com/micro/gvz/introduction.aspx
Regards,
Sam Hopkins
Comment on / Rate this Article
Subscribe toCurrent Metals Prices
| Gold | $836.30 | 23.90 |
| Silver | $13.81 | 0.77 |
| High Grade Copper | $3.55 | 0.15 |
| Palladium | $289.95 | 11.40 |
| Platinum | $1,464.00 | 95.10 |
Related Articles
India Benchmark Gold ETF Sees Record HoldingsGold Moves Higher on Iranian Rocket Tests
Invest in Gold
Foreign Indices & ETFs
| iShares MSCI Canada Index | $30.56 | 0.94 |
| iShares MSCI Brazil Index | $74.87 | 1.53 |
| iShares MSCI Hong Kong Index | $15.55 | -0.25 |
| Market Vector ETF Russia Trust | $40.58 | 0.24 |
| BLDRS Emerging Markets 50 Index | $45.33 | 0.30 |
Aug 19 - Building Permits
Aug 19 - PPI
Aug 19 - Housing Starts
Aug 20 - Crude Inventories
Aug 21 - Initial Claims
Aug 21 - Leading Indicators
Aug 21 - Philadelphia Fed
Brought to you by Wealth Daily
From the Archives...
Be the Smart Money. Take Advantage of the Current Correction!2008-08-11 - Luke Burgess
Why South Africa Can't Catch a Break
2008-08-06 - Sam Hopkins
Total Consideration Would Be $1.5 Billion
2008-07-31 - Gold World Staff
Buy Gold, Hold Cash
2008-07-30 - Greg McCoach
29% Increase in Supply Expected in 4 Years
2008-07-30 - Gold World Staff
It is a potential future shortage of domestic enriched uranium. And if we're not careful, it could put us at the mercy of imports all over again -- just like oil.
But there is one company working hard to keep this nightmare scenario from becoming a reality. In fact, it's virtually a monopoly and its share price could easily double.
To learn more about this Nuclear Monopoly click here.
Gold World, Copyright © 2008, Angel Publishing LLC, P.O. Box 84905, Phoenix, AZ 85071. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Gold World does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of Angel Publishing may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.
Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.
