Friday, January 29, 2010

Investment Demand is Dormant Now, But...

...a Financial Times article keeps the memory of '09 green. It's about commodity ETFs, which the author called "Exchanged-Traded Products," and gold is the star of the show. The SPDR Gold ETF (GLD) is by far the largest commodity-based ETF of them all.

The article deserves a read because it explains why futures-using ETFs often underperform the respective commodities they track. Thankfully for gold investors, GLD stores physical gold...

...although there are doubts on that point, like this fellow has. [He has his own long-established alternative to GLD.]

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