lawman
Thinks s/he gets paid by the post
Help me understand. Gold closed up today $46.10 at $892.20. GLD closed down 3.11%. If GLD is an ETF that tracks the price of gold then why the big difference?
Gold question
- Thread starter lawman
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bssc
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Good reminder that the T in ETF is for traded. The traders are betting that gold prices is going to go down in the long run and this is a temporary spike. This is similar to closed-end mutual funds trading less than their NAVs.
lawman
Thinks s/he gets paid by the post
Call me dumb but I still don't understand..That's not tracking gold. That's speculating..If gold goes up again tomorrow and the next day and the next day and the next where's that gonna leave the "tracking " fund?
It will eventually catch up and probably overshoot. I own SPY which tracks the S&P500 but it frequently closes +/- 0.2% away from its "asset value." It pisses me off but that's because of my OCB tendencies.
crazy connie
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It will eventually catch up and probably overshoot. I own SPY which tracks the S&P500 but it frequently closes +/- 0.2% away from its "asset value." It pisses me off but that's because of my OCB tendencies.
OCB does that mean overly crafty boy
MasterBlaster
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I don't trade gold but from what I can see is gold "futures for December Delivery" were up 5.5% to $897.
The exchage traded fund GLD tracks a spot price. The spot price of Gold today was down 1.26% at the close.
They really aren't the same thing. You are trying to compare spot prices to futures prices. What the numbers tell you is that the market believes gold prices will be somewhat higher come december.
Am I missing something here ?
The exchage traded fund GLD tracks a spot price. The spot price of Gold today was down 1.26% at the close.
They really aren't the same thing. You are trying to compare spot prices to futures prices. What the numbers tell you is that the market believes gold prices will be somewhat higher come december.
Am I missing something here ?
mathjak107
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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your correct the futures price and the spot price can be different. a strike now can make the spot price of something very high. the futures outlook for say 9 months maybe that the strike will be over and hense a lower price
by the same token buying the shares of companies in the commodities business isnt always the same as owning the commodity. if a strike crippled exxons oil output the company may drop but oil can soar.... i owned a small company called AEZ (american oil and gas)which dropped big time while oil was soaring only to have it rise 30% in one trading session yesterday while oil dropped thru 100.00 a barrell. go figure
expected profitability, strikes, bad management, enviornmental controls, financial and cash flow issues all can cause a company to drop at the very time the commodities are soaring
by the same token buying the shares of companies in the commodities business isnt always the same as owning the commodity. if a strike crippled exxons oil output the company may drop but oil can soar.... i owned a small company called AEZ (american oil and gas)which dropped big time while oil was soaring only to have it rise 30% in one trading session yesterday while oil dropped thru 100.00 a barrell. go figure
expected profitability, strikes, bad management, enviornmental controls, financial and cash flow issues all can cause a company to drop at the very time the commodities are soaring
Obsessive Compulsive Behavior -- I think Monk is normal.OCB does that mean overly crafty boy
