1 reply to this topic

[johngeorge]

LINK

[Rogerdodger]

I've never liked ETFs for HOLDING gold. Trading is another matter. GLD has liquidity. Until now, no one has challenged GLD on price. SGOL came in at 0.39 percent, but a 0.01 percent difference isn’t enough to matter. However, 0.15 of a percentage point—37.5 percent lower than before—matters quite a bit, at least to investors with a long-term time horizon. In fairness, it probably matters less for traders, who will continue to favor the more liquid GLD. (One flaw in iShares’ new low-price strategy is that it recently split the shares of IAU 10-for-1, driving the per-share price down from $118/share to $11.80/share. The move appears to be an effort to appeal to retail investors, but for advisers and institutions paying commissions based on the number of shares traded, it raises the expense of trading the fund.)

Edited by Rogerdodger, 11 July 2010 - 04:06 PM.