2024-07-16 01:18:14 ET
Summary
- GLD ETF is often criticized for its lack of current income, with no dividends or active income.
- Dividends (or the lack of) are irrelevant in my view.
- The key is of a good investment is a resource that becomes scarcer relative to the money base.
- And historically, gold and SP500 have been doing an equally good job by this standard.
- Although, tax and fees can cause GLD's performance to deviate from the ideal case more than large equity funds.
GLD ETF: lack of current income
I last wrote on the SPDR Gold Shares ETF ( GLD ) about 3 months ago (to be exact, it was published on Seeking Alpha on April 8, 2024). As you can see from the screenshot below, the title of the article, I Expect More Upside Potential For Gold , already gave away my thesis. In the article, I explained why I see more upside potential for GLD for the following considerations:
GLD has more upside potential, with its price finally breaking out of a multi-year consolidation. The top catalysts include elevated inflation, central bank demand, and gold's expanding industry use. Despite recent rallies, GLD prices are still about the same as ~12 years ago. A quick calculation would show that its price appreciation in the past 12 years does not even keep pace with inflation.
Read the full article on Seeking Alpha
For further details see:
GLD: 3 Things Less Talked About