SPDR Gold Shares

SPDR Gold Shares

SPDR Gold Shares

Have you heard of SPDR Gold Shares? I have always wanted to own a piece of gold bar. My dream has yet to be fulfilled because of exploding gold prices. I have been researching on how to buy gold and came across SPDR Gold Shares.

SPDR Gold Shares is part of the SPDR family of exchange-traded funds (ETF) managed and marketed by State Street Global Advisors.

Buying gold ETF eliminate barriers of purchasing gold such as the logistics of buying, storing and insuring physical gold.

Financial Performance

Unlike companies in my stock portfolio that pays dividends, SPDR Gold Shares (NYSEARCA:GLD) does not pay dividends. I believe that investing in SPDR Gold Shares is simply for growth (profit). This is similar to buying physical gold and selling off when price of gold rises for a nifty profit.

The fund started trading on November 18 2004. Below is how SPDR Gold Trust has performed. All figures are to month end [06/30/2022] unless otherwise indicated.

Cumulative PerformanceSPDR Gold TrustGold Price (MBMA Gold Price)
1 month-1.212833%-1.180182%
3 months-6.538385%-6.443890%
6 months-0.368257%+0.617438%
1 year+2.643423%+3.054193%
5 year+7.467983%+7.897429%
Since inception (to month end)+7.920822%+8.351202%

Price of SPDR Gold Shares

If I looked at the 1 year price of SPDR Gold Trust, it has came back down significantly since peaking in March 2022.

SPDR Gold Trust 1 Year Price

Over a 5 year period, the price of SPDR Gold Trust has appreciated significantly and stabilized at above 160 USD range.

SPDR Gold Trust 5 Year Price

Opportunity or Crisis?

I would have thought the sanctions imposed on Russia, rising inflations will push the demand for Gold higher because precious metals performed well under such circumstances.

The recent retreat in Gold prices surprised me even though prices are still considered high.

Do you prefer to buy physical gold or invest in SPDR Gold Shares?

Is it the right time to invest in Gold now?

One comment

  1. Hi. For some reason I’ve never noticed thefinance.sg pushing updates to this blog till now, so cataching up on some reading. Handy Tip: HWZ forums is a good place for info on gold. Surprised that you have never previously considered adding some gold to your portfolio. Thanks to HWZ, I learnt that IGLN and GLDM are the 2 preferred gold ETFs, not GLD. However, as GLD, IGLN, GLDM are US domiciled, they are subject to US estate duty. I prefer to hold physical bullion – 0 expense ratio, and no estate duty. Some also find it ‘fun’ to collect different designs – which is at least more interesting than holding paper gold that you can’t see and doesn’t earn you any interest or pay dividends. 🙂

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