Wednesday, March 31, 2010

Is SPDR Gold Shares (NYSE:GLD) Still Good Investment?

SPDR Gold Shares Good Investment?

With many well-known investors continuing to put a large amount of their money in gold, the question becomes whether or not an ETF like SPDR Gold Shares (NYSE:GLD) is still a good investment.

I bring it up like that because many of the major investors with a large position in gold bought it at lower prices, and now gold seems to be remaining tight around the $1,100 level, seeming to imply it's going to move forward incrementally rather than in huge swings. That is probably a good thing for most investors.

But as far as SPDR Gold Shares, it can really be simplified as to the answer to the question if it's still a good investment for you. The think to ask is this: Is gold still a good investment? If the answer for you is yes, the answer for SPDR Gold Shares should also be yes.

I think in the current gold environment we'll have to take a longer time-frame than possibly in the past with SPDR, but again, I think that's more healthy than the huge gains it made in a relatively short time.

From November 2008, when the gold ETF dropped as low as $70 a share till now, it has gained almost $40 a share, a nice move by any metric used.

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