The growing number of fans of gold investments, as well as quotations of the precious metal itself, has led to a rapid growth of specialized fund assets. But at the same time, gold depreciation rates are also rising.
Yesterday, the spot price of a troy ounce set a new record: $ 1,913.5, the December futures price rose to $ 1,917.9 (Bloomberg data). And the world’s largest “gold fund” SPDR Gold Shares (GLD), whose shares are listed on the stock exchange and on assets – physical gold, ignored the fund of the same family SPDR S&P 500 (SPY), which controls the dynamics of the index. Last Friday, at the close of trading, GLD assets were $ 76.7 billion, SPY assets – $ 74.4 billion. On Monday, the price of gold rose 2%, GLD assets rose to $ 77.5 billion and the S&P 500 index only added 0.03%. He manages both State Street Global Advisors funds.
Investors remain nervous and fear that stocks in the United States and other developed countries will perform worse than the market for more than a year. To protect themselves from falling prices for these assets and exchange rates, they invest in gold. In August, gold rose 15.6%, from the beginning of the year to 32.4% (Reuters data).
Since GLD shares are listed on the stock exchange in the same way as stocks, this gives investors the ability to buy and sell gold quickly. Each share is one-tenth an ounce. As the fund’s assets grow, so does its investment in gold.