SPDR Gold Trust ETF (GLD) is the first U.S.-traded gold ETF and has turned 10 years old. Terry Sacka, AAMS of Cornerstone Asset Metals Raleigh, NC was interviewed by Trang Ho, writer for Institutional Investor, regarding his sentiments on the event.
PRLog - Dec. 1, 2014 - RALEIGH, N.C. -- The SPDR gold exchange-traded fund (GLD) reinvented the precious metals market and gold trading upon its inception ten years ago on November 18, 2004. It also blazed the trail for all other precious metals exchange-traded funds (ETF) that would follow after it and now has become the first U.S.-traded gold ETF to turn ten years old.
In its first three days of trading it already had over $1 billion in assets and became the world's largest ETF at one juncture when it had $76.7 billion in assets.
Terry Sacka AAMS: chief strategist of Cornerstone Asset Metals
Terry Sacka, AAMS (Accredited Asset Management Specialist) of Cornerstone Asset Metals was contacted by Institutional Investor (a leading global financial magazine focused primarily on international finance and known for its extensive industry research and rankings) writer Trang Ho saying, “We believe the current derivative naked-short position in ETF and futures markets for gold to be in the area of 90 ounces of paper sold for every one real ounce in the registered vaults,” Mr. Sacka writes in an e-mail. “Mind you, most deep physical professionals are skeptical the real gold is there to back up the ETF, as it is claimed to be.”
Terry Sacka believes gold’s price would be much higher without the advent of gold ETFs, which offer a means of paper trading a physical commodity. He recently appeared on The Wealth Transfer show to discuss the "True Gold Price and True Dollar Value"
Dennis Gartman: commodities analyst
Dennis Gartman who helped create a number of gold and currency ETFs:AdvisorShares Gartman Gold/Yen ETF (GYEN), Gartman Gold/British Pound ETF (GGBP) and Gartman Gold/Euro ETF (GEUR) explained, "It broadened the market. It made it far more transparent. It made it easier for the public to get in and to get out.”
Thomas Winmill: precious metals specialist
Thomas Winmill is a specialist in precious metals and natural resources investing as portfolio manager of the Midas Fund (MIDSX). He added, “GLD probably boosted bullion prices and increased market volatility by making gold a legitimate asset class held in pension funds and retirement accounts. Pools of capital that would not otherwise consider using gold in a portfolio now do. It’s a mixed blessing to have. There are greater numbers of buyers, but there could also be greater number of sellers when there’s a panic.”
Miguel Perez-Santalla: Sales and marketing manager of Heraeus Metals New York
Miguel Perez-Santalla, sales and marketing manager of Heraeus Metals New York. He wrote in an email, “Gold is a store of value because gold will never go to zero. All other financial instruments can. It is not a classical investment; it is more of an insurance policy.”
Gold as currency
Those distrustful of paper currencies see gold as a currency that has been used for centuries, the Internal Revenue Service treats GLD as a collectible. Gold offers asset diversification in an investment portfolio since its movements are independent from the bond and stock markets. Over the past ten years, it has a correlation ratio of 0.09 with SPY and iShares 20-Year Treasury Bond ETF (TLT).
About SPDR Gold Trust ETF (GLD)
SPDR Gold Trust ETF is the world's largest precious metals ETF. GLD accounts for 80 percent of assets invested in physically backed gold ETFs in the U.S. and half of gold ETFs globally, according to the World Gold Council. With 723 metric tons, GLD owns more of the yellow metal than the European Central Bank and India combined. GLD, with about 1 million shareholders, can be found in risk-averse pension portfolios and high-rolling hedge funds alike.
About Terry Sacka
Terry is a financial analyst and accredited asset management specialist (AAMS) at Cornerstone Asset Metals, a private bullion dealer located in Raleigh, North Carolina. The company enables investors, both large and small, to use metals such as gold, silver, platinum and palladium as an effective hedge for their retirement accounts against inflation. The company mission is to put people back in charge of their wealth through tangible assets that have been used as a medium for exchange since the dawn of civilization.
More information can be found on his website at http://www.cornerstoneassetmetals.com/spdr/
Cornerstone Asset Metals, 8480 Honeycutt Rd, Ste 200, Raleigh, NC 27615 (888) 747-3309
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Terry Sacka Among Gold Experts Quoted in Institutional Investor On Ten Year Old SPDR Gold Trust
December 01, 2014 at 08:32 AM EST