SPDR Gold Shares (SPDR) , an exchange-traded fund (ETF) - [cheapest way top buy into gold bullion market by investing into gold companies] run by the World Gold Council(WGC) is traded on exchanges such as Hong Kong & Singapore. SPDR hold gold bars in bank vaults( HSBC on trust ) to back the holdings of their investors.
The gold is held in London by HSBC Bank on behalf of WGC. If investor wants to buy ETF, WGC will buy the gold bullion and sell to the investor the SPDR-ETF's share( backed by gold bullion/bars)and deposits the gold bullion with HSBC.
The yield / return per annum of gold related investment either direct investment ( holding gold bar physically ), equities or ETFs is averaging at 8.0% and above for past 20 years which was an unpward trend.
Gold spot price:-
Nov. 2008 USD$712.00
Mar. 2009 USD$912.00
Feb. 2010(f)USD$1,500.00
* (f) - forecast
Comment by analyst/ economist:-
"Gold investing is deemed the safest and most reliable" Hwang DBS Investment
"Demand for gold will always be there as it's tradable, portable and convertible". Standard Chartered Bank
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