Gold Funds

 Fund Name Market vectors
goldMiners		 Street Tracks
Gold		 iShare Comex
Gold Trust
Symbol GDX GLD IAU
Objectives Designed to track the price of gold
through investments in gold mining indexes		 The trust holds gold in an account with a bullion dealer, the account holder has full ownership of the gold bars For value to reflect the price of gold owned by the trust, less the expenses and liabilities
Express Ratio 0.55% 0.40% 0.40%
Advantages

1) GDX closely tracks gold mining companies, exposing the investor to less of the volatility related to purchasing actual gold

2) GDX trades on the market throughout the day

1)An inexpensive and simple way for retail traders to access the gold market.

2)Transaction costs related to GLD shares are expected to be lower than costs relating to the actual buying, storage and insurance of physical gold

1)A simple and cost-effective means of making investment similar to investing in gold

2)alternative that allows participation in gold market through securities market

Disadvantages

1)Trading on Amex may be halted due to extraordinary market volatility

2) market price of the fund shares may become significantly different from NAV of the shares, in times of extreme market volatility

1)to establish a position in the GLD ETF, an investor is required to put up at least 50% of capital

2) The fund only trades during US Market hours

 

1) market price is as unpredictable as the price of gold has historically been

2)potential for losses, regardless if held for short-,mid- or long-term

 

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