For The Gold Bullion Traders
Sequitur
Posts: 1,195
If you play the gold market, keep your eyes out for two new exchange-traded funds that will track the gold bullion markets. The first gold ETF is called streetTracks Gold Shares and will trade on the NYSE under the symbol "GLD." The second gold ETF will be called iShares Comex Gold Trust and will trade on the ASE under the symbol "IAU."
I think these are the first ETFs that are pegged to the price of gold. I haven't reviewed a prospectus, so I don't know what the underlying basket of assets is or how the price is pegged to the gold market, but my guess is these funds will own actual bullion -- which means you will derivatively own bullion via the fund shares. (If these funds become viable, hopefully they will reduce the outrageous bid/ask spread on physical bullion.)
I think these are the first ETFs that are pegged to the price of gold. I haven't reviewed a prospectus, so I don't know what the underlying basket of assets is or how the price is pegged to the gold market, but my guess is these funds will own actual bullion -- which means you will derivatively own bullion via the fund shares. (If these funds become viable, hopefully they will reduce the outrageous bid/ask spread on physical bullion.)
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