Gold and Silver ETFs Top the Pack

Source:

At this stage, gold ETFs have risen to the top of the performance pack, in terms of percentage falls from high prices. The world's biggest gold ETF, the SPDR Gold Trust, currently holding USD 22bn worth of gold bullion on behalf of its investors, is just 6% off its all time high.

...Just a week ago it seemed to be a foregone conclusion that the price would make a successful attack on the USD 150 a barrel level for the first time. The sell-off of physical commodities has spread like a contagion into most spot and future markets, and even into commodity indices - such as the Reuters/Jeffries CRB, now 11% off its highs - and also into exchange traded funds (ETFs), which specialise as commodity proxies, and are also known as exchange traded commodities (ETCs).

At this stage, gold ETFs have risen to the top of the performance pack, in terms of percentage falls from high prices. The world's biggest gold ETF, the SPDR Gold Trust, currently holding USD 22bn worth of gold bullion on behalf of its investors, is just 6% off its all time high. The world's biggest diversified resources stock, BHP Billiton, has fallen 26% from its highs, seen in May.

Measured over the past 12 months, however, the returns from silver bullion ETFs outrank their gold peers. Gold and silver bullion have a well documented history of performing as high beta plays during times of crisis. The two metals scored record prices earlier this year in March, when Wall Street's Bear Stearns crisis was at its most perplexing stage...

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe