Hedge Funds Are Buying Up Gold ETFs, Should You?

Michael Johnston submits:Perhaps no corner of the ETF market has exploded as rapidly as the precious metals space, as the democratization of an asset class previously off limits to many investors has resulted in billions of dollars in cash inflows. The SPDR Gold Trust (GLD) is now the second-largest ETF by total assets, with more than $53 billion under management.

ETF Database submits: ETF Securities, the European-based ETF issuer famous for its lineup of physically-backed precious metal ETFs, announced further expansion of its product offering with the launch of an ETF that holds physical gold bullion in Singapore, the ETFS Physical Asian Gold Shares Trust. The new fund will trade under the symbol AGOL and will charge investors a competitive 39 basis points for its storage fees.

By Christian Magoon:GLD BEHIND IN PERFORMANCE AND INFLOWS TO IAU

By Christian Magoon:Physical gold ETF products finished the week in the red, with the largest gold ETFs - GLD and IAU - losing just over 1% of their value. With mixed economic data in the United States and concerns about election results in Europe, gold investors escaped the week with limited pain.

By Waterbury Research:ETF investors or traders looking to take a position on the value of gold have a range of choices from the various ETF providers. This discussion concerns the choice between the two basic types of gold exchange traded funds: ETFs which track the spot price of gold and the ETF's which hold shares of gold mining companies.

ETF Database submits: Times have been tough for investors hoping for a quick turnaround in America’s economic fortunes; slow growth, high budget deficits and extensive unemployment have caused many to lose confidence in the dollar. Thanks to this and record low yields, investors have sought the relative security of the precious metal markets with gold in particular shinning throughout the crisis.

ETF Database submits: As the American economy continues to tread water, many investors have grown increasingly concerned about a double-dip recession. This has pushed dollars into the bond markets which has caused prices to soar as investors attempt to protect themselves from any future economic storms. However, with yields now approaching record lows, investors have started to rethink this move into bonds, especially considering the dire fiscal position that most governments find themselves in.

Gary Gordon submits: Morningstar recently reported that investors poured $8 billion into 3 prominent Gold ETFs over the first 6 months of 2010: SPDR Gold (GLD), iShares Gold Trust (