Racepacket (talk | contribs) more data on size of ETF gold holdings |
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'''SPDR Gold Shares''' is an exchange-traded fund (ETF). It is (as of September 2010) the second-largest fund in the world. It was first listed on the New York Stock Exchange in November of 2004, and traded on NYSE Arca since December 13, 2007. SPDR Gold Shares now also trade on the Singapore Stock Exchange, the Tokyo Stock Exchange and the Stock Exchange of Hong Kong.<ref name=wcts>{{cite web|url=http://www.spdrgoldshares.com/|title=Bringing the Gold Market to Investors|publisher=World Gold Trust Services, LLC|accessdate=2010-10-30}}</ref> Unlike most ETFs which represents ownership in a basket of stocks, this ETF actually owns only gold. The share price is designed to track the price of a tenth of an ounce of gold. If the share price differs from the gold market price, the fund's manager exchanges blocks of 100,000 ETF shares for 10,000 ounces of gold. The possibility of such exchanges keeps the ETF price roughly in line with the gold price, although the prices can diverge during each day. |
'''SPDR Gold Shares''' (formerly streetTRACKS Gold Shares) is an exchange-traded fund (ETF). It is (as of September 2010) the second-largest fund in the world. It was first listed on the New York Stock Exchange in November of 2004, and traded on NYSE Arca since December 13, 2007. SPDR Gold Shares now also trade on the Singapore Stock Exchange, the Tokyo Stock Exchange and the Stock Exchange of Hong Kong.<ref name=wcts>{{cite web|url=http://www.spdrgoldshares.com/|title=Bringing the Gold Market to Investors|publisher=World Gold Trust Services, LLC|accessdate=2010-10-30}}</ref> Unlike most ETFs which represents ownership in a basket of stocks, this ETF actually owns only gold. The share price is designed to track the price of a tenth of an ounce of gold. If the share price differs from the gold market price, the fund's manager exchanges blocks of 100,000 ETF shares for 10,000 ounces of gold. The possibility of such exchanges keeps the ETF price roughly in line with the gold price, although the prices can diverge during each day. |
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As of October 30, 2010, the trust has 41,574,486.00 ounces of gold in its custody, representing an investment of $55,972,246,241.98.<ref name=wcts/> This fund together with the [[ |
As of October 30, 2010, the trust has 41,574,486.00 ounces of gold in its custody, representing an investment of $55,972,246,241.98.<ref name=wcts/> This fund together with the [[IShares_COMEX_Gold_Trust#iShares_COMEX_Gold_Trust|iShares COMEX Gold Trust]] own 40 million ounces of gold bullion. That makes the two ETFs one of the largest holders of gold in the world, behind [[France]] and ahead of [[China]].<ref>{{cite web|url=http://etfdb.com/2010/gdx-vs-gdxj-a-better-way-to-play-gold/|title=GDX vs. GDXJ: A Better Way To Play Gold?|first=Michael|last=Johnston|pubisher=Carolean Capital Partners LLC.|accessdate=2010-10-30}}</ref> |
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The Trust’s allocated gold bullion is kept in the form of London Good Delivery bars (400 oz.) and held by the Custodian, HSBC Bank USA, in its London vault or in the vaults of sub-custodians.<ref name=info>{{cite web|url=http://www.spdrgoldshares.com/media/GLD/file/GLD_Key_Info.pdf|title=Key information|publisher=World Gold Trust Services, LLC|accessdate=2010-10-30}}</ref> The ETF pays an annual expense charge of 0.40% per annum.<ref name=info/> The ETF has been criticized by Catherine Austin Fitts, Carolyn Betts, and Hinde Capital for its extremely complex structure and [[Prospectus (finance)|prospectus]], possible [[conflict of interest]] in its relationships with HSBC and [[JPMorgan Chase]] which are believed to have large [[Short (finance)|short]] [[Position (finance)|position]]s in gold, and overall lack of transparency.<ref name="metals_puzzle" /><ref name="hinde">{{cite web | url = http://www.hindecapital.com/docs/hil_reports/Hinde%20Capital%20-%20Precious%20Metals%20ETF%20Alchemy%20Aug%2012%202010.pdf | title = Precious Metals ETF Alchemy | work = Hinde Capital Investor Presentation | date = 2010-08-12 }}</ref> The fund's acceptance of [[lease]]d gold from "Authorized Participants" may create the risk of competing claims of [[Title (property)|title]] on the fund's gold.<ref name="hinde" /> Some critics compair the ETF with [[mortgage-backed securities]] and [[collateralized debt obligations]].<ref name="metals_puzzle" /><ref name="hinde" /> These problems with SPDR Gold Trust are not necessarily unique to the fund, however as the dominant gold ETF the fund has received the most extensive analysis. |
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The Trust’s allocated gold bullion is kept in the form of London Good Delivery bars (400 oz.) and held by the Custodian, HSBC Bank USA, in its London vault or in the vaults of sub-custodians.<ref name=info>{{cite web|url=http://www.spdrgoldshares.com/media/GLD/file/GLD_Key_Info.pdf|title=Key information|publisher=World Gold Trust Services, LLC|accessdate=2010-10-30}}</ref> The ETF pays an annual expense charge of 0.40% per annum.<ref name=info/> |
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==See also== |
==See also== |
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* [[Gold exchange-traded fund]] |
* [[Gold exchange-traded fund]] |
Revision as of 20:51, 30 October 2010
SPDR Gold Shares (formerly streetTRACKS Gold Shares) is an exchange-traded fund (ETF). It is (as of September 2010) the second-largest fund in the world. It was first listed on the New York Stock Exchange in November of 2004, and traded on NYSE Arca since December 13, 2007. SPDR Gold Shares now also trade on the Singapore Stock Exchange, the Tokyo Stock Exchange and the Stock Exchange of Hong Kong.[1] Unlike most ETFs which represents ownership in a basket of stocks, this ETF actually owns only gold. The share price is designed to track the price of a tenth of an ounce of gold. If the share price differs from the gold market price, the fund's manager exchanges blocks of 100,000 ETF shares for 10,000 ounces of gold. The possibility of such exchanges keeps the ETF price roughly in line with the gold price, although the prices can diverge during each day.
As of October 30, 2010, the trust has 41,574,486.00 ounces of gold in its custody, representing an investment of $55,972,246,241.98.[1] This fund together with the iShares COMEX Gold Trust own 40 million ounces of gold bullion. That makes the two ETFs one of the largest holders of gold in the world, behind France and ahead of China.[2]
The Trust’s allocated gold bullion is kept in the form of London Good Delivery bars (400 oz.) and held by the Custodian, HSBC Bank USA, in its London vault or in the vaults of sub-custodians.[3] The ETF pays an annual expense charge of 0.40% per annum.[3] The ETF has been criticized by Catherine Austin Fitts, Carolyn Betts, and Hinde Capital for its extremely complex structure and prospectus, possible conflict of interest in its relationships with HSBC and JPMorgan Chase which are believed to have large short positions in gold, and overall lack of transparency.[4][5] The fund's acceptance of leased gold from "Authorized Participants" may create the risk of competing claims of title on the fund's gold.[5] Some critics compair the ETF with mortgage-backed securities and collateralized debt obligations.[4][5] These problems with SPDR Gold Trust are not necessarily unique to the fund, however as the dominant gold ETF the fund has received the most extensive analysis.
See also
References
- ^ a b "Bringing the Gold Market to Investors". World Gold Trust Services, LLC. Retrieved 2010-10-30.
- ^ Johnston, Michael. "GDX vs. GDXJ: A Better Way To Play Gold?". Retrieved 2010-10-30.
{{cite web}}
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suggested) (help) - ^ a b "Key information" (PDF). World Gold Trust Services, LLC. Retrieved 2010-10-30.
- ^ a b Cite error: The named reference
metals_puzzle
was invoked but never defined (see the help page). - ^ a b c "Precious Metals ETF Alchemy" (PDF). Hinde Capital Investor Presentation. 2010-08-12.
External links