Gold ETFs | Gold ETNs

Did Your Nest Egg Gain from the Coronavirus Crash?

Sick buying high & selling low? Fed up of the fees you pay? Tired researching investments? End your financial pain now. You have the opportunity to earn superior returns with low expenses, low risk, and minimal effort.

For a change, you will actually buy low, sell high, and keep what you earn. Register free and test drive AlphaProfit Premium Service investment newsletter now.

about AP to be added …

Following a volatile ride, the coming week promises to be an interesting one for gold investors.

Leaders from the Group of Eight industrial nations and major developing nations including China will meet in Italy from July 8 to 10. The wide-ranging agenda includes discussion on the state of the world economy and financial regulation.

China has requested discussion on the position of the U. S. dollar as the world’s global reserve currency and expressed interest in using the International Monetary Fund’s Special Drawing Rights as a super-sovereign currency. Developed member nations are however downplaying this issue.

Separately, the U. S. Treasury will hold four auctions next week to sell $73 billion of notes, bonds and inflation-protected securities as President Obama pushes the nation’s marketable debt to a massive $6.45 trillion. Given China’s standing as the largest holder of U. S. Treasury debt, currency as well as gold traders will be keenly watching developments from the Group of Eight meeting. If recent market action serves as any guide, gold will likely rise first before paring gains.

Here are some ways to play gold depending on your risk tolerance and investment time horizon. While gold bullion is preferred by conservative investors, aggressive traders try to swing for the fences with leveraged or short securities.

Gold Bullion ETFs

ETFs that hold gold bullion like SPDR Gold Shares (GLD) and iShares COMEX Gold Trust (IAU) allow your investments to track the spot price of gold without worrying about theft of and insurance for the metal.

Gold Futures ETNs

ETFs like PowerShares DB Gold Fund (DGL) allow you to own gold futures instead of bullion. Such ETFs automatically rollover futures contracts and save you the trouble.

Gold Mining Mutual Funds and ETFs

Mutual funds and ETFs that invest in gold mining companies offer you the convenience of investing in a diversified basket of such companies. Ownership of gold mining shares often offers more upside potential with higher downside risk than ownership of bullion. Fidelity Select Gold (FSAGX), First Eagle Gold (FEGIX), and USAA Precious Metals & Minerals (USAGX) are examples of some mutual funds that invest in gold. Market Vectors Gold Miners (GDX) and PowerShares Global Gold & Precious Metals (PSAU) are ETFs that invest in gold mining companies.

Leveraged Mutual Funds, ETFs, and ETNs

Aggressive investors have a wide range of investment choices. Mutual funds like ProFunds Precious Metals UltraSector (PMPSX), ETFs like ProShares Ultra Gold (UGL) and ETNs like DB Gold Double Long (DGP) offer leveraged exposure to gold. Such leveraged investments are usually not suitable for buy-and-hold investors.

Short Mutual Funds, ETFs, and ETNs

Mutual funds like Short Precious Metals ProFunds (SPPSX), ETFs like ProShares UltraShort Gold (GLL) and ETNs like DB Gold Short (DGZ) and DB Gold Double Short (DZZ) provide opportunities to profit from a decline in the price of gold.

Must-read Articles on Sector Investing

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

High-potential diversified portfolios can be constructed by dividing assets among a group of sector funds. This approach gives the investor flexibility to over-weight or under-weight certain sectors versus broadly diversified indexes. 'Sector funds are too risky.' 'I doubled my money with Fidelity Select Technology in 12 months!' 'Avoid sector funds.' If all of this sounds confusing, you are not alone.

Sector Mutual Funds: How to Pick Winning Sector Funds and Avoid Losers

If you are looking to earn great returns from the stock market sector mutual funds are right up your alley. Sophisticated investors recognize the potential sector mutual funds offer and know how to make such funds work for them. You can consistently beat the market by investing in the right sector mutual fund at the right time. In fact, you can make money even in bear markets.

Sector ETFs: Invest in the Best Sector ETF Consistently

Sector ETFs are among the most potent investment vehicles that allow individual investors to exploit advantages previously available only to large institutions. You can beat the market by investing in the right sector ETF at the right time. In fact, you can actually make money even when the overall market is tanking. However all too often, investors use sector ETFs inappropriately and get their fingers burnt.

New ETF and Mutual Fund Recommendations

The Fidelity and ETF Core and Focus model portfolios have gained at annualized rates of 14.6% and 17.8%, respectively since 1994. The model portfolios will be repositioned with new mutual fund and ETF recommendations on Tuesday, December 31. Learn more about AlphaProfit's Free and Premium Service investment newsletters.

Priceless intangibles