NEW GOLD EXCHANGE TRADED FUND ON NYSE

Deb048gold

Symbol is GLD. Closed today on its first day of trading at 1/10th the spot price of 442.00

Each share represents 1/10th oz. of gold. This is going to be a great alternative to buying bullion or gold coins if you are buying as an investment or as a hedge.

The portfolio managers are State Street Research and again it trades on the NYSE.

Very small internal managing fee and even with a commission charge, it is cheaper than most mark-ups.
Also 3 day settlement means super quick liquidity. Plus you don't have to hassle with storage options.

Russ

And thus it begins.

Russ, NCNE

roadrunner

And the biggest drawback with such a fund.....no physical possession. A major problemo imo. Sorry, no such fund for me.
If you have the money to buy physical gold, you should take possession. There will undoubtedly be "issues" down the road when it comes time to sort out whose gold is where. Imo, get your own gold. If you want to own a piece of paper, do it in gold stocks.

roadrunner

RYK

RR,

To me, there are pros and cons.

Pros:
Easy and convenient to transact (buy and sell)
Miminimze frictional cost of trading
Easy to put bullion equivalent in IRA , trusts, etc.
Especially easy to short

Cons:
Lack of privacy
Lack of portability (in doomsday scenarios, etc.)

I have not yet decided whether to swap my meager gold bullion holdings into the ETF.

Tonelover

Wall Street is jumping on the bandwagon eh? Might not be a bad time to sell.

Sequitur

I posted about this a couple days ago. UBS isn't the only one opening with an ETF -- another one is slated to launch shortly. And yes, the investment banks are getting into the game with these funds.