The price of gold surged $15.60, or 1.41%, to $1,123.20 an ounce on Wednesday. Concerns of a currency war, a rout in global equities markets, and a slipping U.S. dollar all drove investors to the safe-haven money alterative.
That marked the fifth consecutive session in which the gold price ended higher.
In the last five trading sessions, the SPDR Gold Trust has climbed 2.4% as well.
Gold has been off investors' radar recently thanks to climbing equities prices. But unexpected moves like the one China's central bank pulled off this week, devaluing its yuan currency by some 2.5% in two days, sent investors back to the precious metal.
Every portfolio should include a solid gold position as a means of diversification, inflation hedge, and protection against geopolitical risks. And the SPDR Gold ETF (NYSE Arca: GLD) is one of the best places to start with an initial or additional gold investment.
Gold ETFs like GLD allow investors to take advantage of the unique characteristics of gold without having to buy an ounce of physical gold coins or bullion. While holding shares in the fund does come with its cost – a 0.4% expense fee to cover administrative overhead and a 28% tax on long-term capital gains – it eliminates the burden of storage on the investor's part.
Savvy investors have already started to piling into the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund.
Wednesday, GLD reported its holdings rose 0.6% to 21.6 million ounces.
The price of gold has recovered roughly 4% from the five-and-a-half year low of $1,077 it hit in July. The gold price was under substantial pressure last month as talks of a U.S. Federal Reserve interest rate hike heated up.
Still, Money Morning Resource Specialist Peter Krauth says current prices offer one of the best chances to buy gold in a decade.
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