GLD ETF vs. Gold Bullion Earnings

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#1 Fri, Sep 16, 2011 - 6:42pm

GLD ETF vs. Gold Bullion Earnings

Hi Forum!

I'm a new investor in PM's and notice that the return on investment since 2007 for the ETF (GLD) is much greater than that for a 100 oz. of gold bullion. From Jan 2007 thru Sept 2011, the ROI on GLD has been 175% vs. 118% for 100 oz. gold bullion if calculated from the NAV and spot prices. Why don't these %'s match up more closely? If my numbers are correct, then investing in PM ETFs is the way to go vs. holding PM bullion.

GLD ETF, NAVs: 1/2007 is 63.58; 9/2011 is 175.80

100 oz. Gold spot prices: 1/7 at $830 oz.; 9/11 at $1,872 oz.



Edited by: Anonymous on Nov 8, 2014 - 5:15am
Fri, Sep 16, 2011 - 7:18pm
Brotha Bob
Joined: Jun 15, 2011

Keep reading

Keep reading. Check out Harvey Organ's blog. First, I will not comment on your numbers, for I have not done the research. Second, physical gold that you can hold is much better then anything else. If you can't hold it, you don't own it. Third, GLD is a fraud, or so it is said. They don't own physical, but paper and derivatives. I am sure the derivatives is how your numbers show a better return then spot. Don't be fooled, many on here and other places, have talked about the issues with GLD and SLV. Better yet, read the persectus. Others have and found it lacking. Just because the returns might be better, does not mean it is safer or prudent to invest there. Be warned and cautious with GLD. I hope others respond to your post and provide better detail to help you.

May God Help Us All But, what do I know?