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its easy ,its quick to buy and sell and after trying to store it on my own years ago through fidelity and the bank of delaware i wouldnt entertain any other way .
its easy ,its quick to buy and sell and after trying to store it on my own years ago through fidelity and the bank of delaware i wouldnt entertain any other way .
yes but are their other gold ETF,s which have lower charges than (GLD)
its close but not 100%. the gold price is the spot price today. gld is based on gold and contracts to buy gold off in the future .
its like USO the oil version of gld was selling for less than the spot price of oil when oil was up in the 140's. it sold for less than spot because it reflected the contracts off in the future at that time which thought the spot price was higher than they saw oil being say a year from then.
all in all though its a decent proxy.
etf's track very close to what the underlying assets are. thats because institutions watch for the slightest spread between an etf and the assets it holds and arbitrage that difference..
the instant the assets differ they will sell or buy a basket of the same assets as the etf and either buy or sell the actual etf .
its close but not 100%. the gold price is the spot price today. gld is based on gold and contracts to buy gold off in the future .
its like USO the oil version of gld was selling for less than the spot price of oil when oil was up in the 140's. it sold for less than spot because it reflected the contracts off in the future at that time which thought the spot price was higher than they saw oil being say a year from then.
all in all though its a decent proxy.
etf's track very close to what the underlying assets are. thats because institutions watch for the slightest spread between an etf and the assets it holds and arbitrage that difference..
the instant the assets differ they will sell or buy a basket of the same assets as the etf and either buy or sell the actual etf .
that forces spreads extremely tight.
as long as doesnt act comparable to some other commodity ETF,s like (COW) for example , this livestock ETF is down 4% in the past two years , this despite the fact that beef prices have doubled in the past two years
there has to be way more to that story as i cant see beef up 2x and livestock falling that much unless its a labor and transportation issue on the end product.
its not cow that was down it was livestock pricing as cow did better than their index.
there has to be way more to that story as i cant see beef up 2x and livestock falling that much unless its a labor and transportation issue on the end product.
its not cow that was down it was livestock pricing as cow did better than their index.
trust me , the price of cattle has shot up in the past two years
while an etf holds the actual commodity or futures contract on that commodity an etn is a debt instrument issued by a bank and is like a bond indexed to a commodity index. your linked to how that index does .
its a very complex structured product with very different structure,risks and taxes then an etf. tax wise an etn can be better ,risk wise an etn can be worse.
an etf is at least secured by the underlying assets. an etn is non secured as basically its a bond issued by a bank or brokerage and your return is just linked to an index.the brokerage buys futures contracts to make the link.
Last edited by mathjak107; 06-02-2012 at 05:28 PM..
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