ETF XRAY

streetTRACKS Gold Shares (GLD)

The green shaded areas on each side of the chart illustrate the trading range of GLD so far in 2007. GLD began January at $61 and in a column of O’s (supply), by the end of February GLD had rebounded to $68 for an 11% increase in value. Though streetTRACKS Gold Trust is in a column of O’s after a nice rally in April it is still trading above its bullish support of $62. If it hits $63 it will dip below its 200 day moving average of $63.08. GLD is trading below its 50 day MA of $66.52 and should be watched carefully here in the short term. Last year around this time GLD did have a considerable reversal to the downside by 16 points or 22%.

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DE Smith of MyPortfolioView

GOLD ETFS UP DOUBLE DIGITS

Gold has performed quit well so far in 2007. IAU closed last night at a year high of $68.32; last time it reached these levels was back in February. January 2006 through May 2006 IAU gained 36% moving from $53 to its high of $72. As the markets moved ahead GOLD fell out of favor giving up most all the gains it had achieved earlier in the year. So far this year iShares Comex Gold Trust (IAU) is up 10%. Street Tracks GLD started out the year in a column of O’s but has since reversed into demand for a 13% YTD gain.

Moving averages:
IAU: MA (50 day) $66.29 | MA (200 day) $62.29
GLD: MA (50 day) $66.21 | MA (200 day) $62.92

(Click on images for larger view)

DE Smith of MyPortfolioView

GOLD IS STILL GOLDEN

GOLD BOOM / DOLLAR BUST
"As the U.S dollar threatens a two-year double-bottom re-test of its 2004 low, it serves as a timely reminder that the dollar remains firmly entrenched in a century long secular bear market.

Some 15-years ago in 1992, the dollar hit it lowest levels striking prints south of 78.50. Last week, it slipped back below 82.00 breaching lows most recently recorded last year in December of 2006." (Read entire article from Freebuck.com)

GLD moving averages: 50 day $66.01 | 200 day $62.71

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DE Smith of MyPortfolioView

Using Commodity ETFs

My opinion is that commodity exchange-traded funds or ETFs should not be used as a short term play but rather to more effectively diversify and buffer your ETF portfolio. Nobody can really say where say silver, gold, or oil prices will be in a year - just that they will bounce around and not be correlated with equity prices.

Commodity ETFs such as Barclays Global Investors' popular iShares Silver Trust (AMEX:SLV - News) has reached $1.8 billion in assets. United States Oil (AMEX:USO - News) has also been popular, reaching $400 million since its launch in April 2006.

Jesse Emspak of IBD takes a closer look at SLV and discusses some of the tax implications of commodity ETFs. They often invest in futures. A portion of those gains are taxed at higher rates than capital gains from stocks. Gold and silver are also taxed as collectibles, not securities, putting the long-term gains rate at 28%. Some ETFs are limited liability companies or partnerships, which are taxed even if no distribution is made.

By Carl Delfeld of the Chartwell ETF Advisor

Will ETFs Follow Gold Futures Higher

Simon Constable of theStreet.com describes how gold bullion contracts were rising 80 cents at $673.30 an ounce on the Comex division of the New York Mercantile Exchange. The exchange-traded funds that hold the metal, streetTracks Gold Shares ( GLD ) and iShares Comex Gold (IAU) were down slightly and opinion differs where prices will go from here. You can click on chart to the left to see my analysis of GLD. Read entire article

DE Smith / MyPortfolioView.com

A Look at StreetTRACKS Gold Trust (GLD) ETF

StreetTRACKS Gold Trust (GLD) – The green shaded area is the battle between supply and demand in 2006. In all GLD had 14 reversals in 2006 compared to only 4 in 2005. 2006 was without a doubt a volatile year for GLD. As you can see GLD was at $51 in Jan 06 on its way to $72 by May. With May came a pretty serious reversal into a column of O’s and before GLD could recover it gave up better than 22%. So far in 2007 GLD has established itself in a column of X’s, and just broke through its bearish resistance and a double top at $66.

By DE Smith of MyPortfolioView.com

Gold ETFs Beat Miners

Gold exchange-traded funds or ETFs have taken the wind out of the sails of mining stocks. Some reasons include that gold ETFs offer a cleaner play without the added operating and country risks of gold mining companies.Citigroup estimates that gold ETFs currently hold about $13 billion of gold. Since January 2006, gold is up 29% while the FTSE gold mines index is up only 12%.

Interestingly, the new PowerShares DB Gold (DGL) is a different breed of gold exchange traded fund (ETFs) since it owns no gold instead creating its exposure through futures market. The vast majority of its assets are in treasury bills that pay interest. Investors may also like to take a look at the Silver ETF (SLV).

Gold ETFs Lead Record Sales

By Carl Delfeld of the Chartwell ETF Advisor

Gold sales hit a record $65.3bn last year in spite of a 10 per cent fall in demand in tonnage terms, according to the World Gold Council, which released its fourth-quarter report on the market on Thursday. reported that rapid growth in the popularity of gold exchange traded funds or means that ETFs such as (IAU) have become the main driver of investment demand growth. The launch of several new gold exchange traded funds helped inflows into ETFs rise by 27 per cent, to 265 tonnes, last year. At the end of last year, total gold stocks held by ETFs and other similar funds amounted to 652.5 tonnes, worth around $13.3bn.

Chris Flood of the Financial Times

Surprisingly, investment in gold ETF’s overtook demand for gold bars

StreetTRACKS Gold Trust ETF

 
The giant among today's gold funds, the Streettracks Gold Trust, an exchange-traded fund with a market capitalization of $9.5 billion, didn't come on the scene until November 2004.
Since then it has returned 17 percent a year, according to my Bloomberg — a nice payoff, to be sure, but considerably less than the big numbers figured from the lows in the early '00s.