This ETF provides physical exposure: by owning your shares, you get a return on the securities that make up the index (since the ETF owns them directly). The SPDR Gold Shares (GLD) ETF tracks the price of gold bars on the OTC market. Gold is a precious metal commodity and many investors want to keep physical gold as a protection against the general decline in economic conditions and against inflation, while some may use it as a method of diversifying portfolios. Investing in gold ETFs is a cost-effective and easy way to expose yourself to gold, and the SPDR Gold Shares (GLD) ETF is one of many ETFs that offer this exposure.
For those looking for an even more direct way to invest in gold, they may want to consider working with a Gold IRA broker to purchase physical gold. GLD tracks the price of gold by holding gold bars in a trust in the form of 400-ounce London Gold Delivery ingots, deposited in an assigned account.