GLD - SPDR Gold Trust

GLD - SPDR Gold Trust is the largest gold-backed exchange-traded fund in the world. Founded in 1993, SPDP is known as an acronym for Standard and Poor Depository Receipt. The sponsor of the trust is the World Gold Trust Services LLC. The HSBC Group acts as a custodian while BNY Mellon Asset Servicing functions as its trustee. The shares of the trust are listed under the symbol GLD on the New York Stock Exchange and the Singapore Exchange. The Honk Kong Stock Exchange uses the ticker 2840 while the Tokyo Stock Exchange lists under the ticker 1326.

The aim of the fund is to reflect the price of gold at any given time. Unlike other exchange-traded funds that trade futures contracts, the GLD-SPDP invests in gold bullion. The value of the fund’s shares is set at about one tenth of an ounce of gold. Rather than purchasing physical gold, interested parties invest in the price of gold. Anyone can participate in the fund with a minimum of one share. At present, the shares of the fund are the most commonly held shares in the United States. Many people choose to invest in the trust because costs are lower than the actual investment and storage of physical gold. The investors should be aware that gold is deemed collectible by the Internal Revenue Service. Therefore, investment in shares may result in a higher tax rate over the accumulated gains.

The fund has owned a record quantity of 705.9 tons of gold. GLD - SPDR owns more gold than China, the European Central Bank, and the Netherlands. Between December 2007 and July 2008, the trust invested in 79 tons of gold. The major gold purchaser is also the main seller of gold bullion. In 2008, the GLD-SPDR Gold Trust has sold more than 10 tons of gold in a single day. As an illustration, this is the combined reserve of Bahrain, Canada, and Mexico.

Copyright © 2014 All rights reserved.