GLD NYSE

What is GLD?

SPDR Gold Shares (GLD) is the largest and most liquid gold ETF, holding physical gold bullion in London vaults. Each share represents approximately 1/10th of an ounce of gold, providing a convenient way to invest in gold without physical storage.

Gold as a Portfolio Asset

Gold has historically served as a store of value, inflation hedge, and portfolio diversifier. It tends to perform well during periods of uncertainty, currency debasement, and geopolitical instability.

Gold Allocation by Investor Type

• Conservative: 5-10% allocation for stability
• Moderate: 3-5% for diversification
• Aggressive: 0-3% or tactical allocation

GLD vs IAU vs GLDM

GLD (0.40% expense ratio) is the most liquid but most expensive. IAU (0.25%) and GLDM (0.10%) are cheaper alternatives. For long-term buy-and-hold, GLDM offers the lowest cost. For trading, GLD's superior liquidity matters.

Physical Gold Storage

GLD holds approximately 830 tons of gold in HSBC's London vault. The trust undergoes semi-annual physical audits. Unlike gold futures, GLD has no roll costs or contango issues.

Tax Considerations

GLD is structured as a grantor trust and taxed as a collectible, meaning long-term capital gains are taxed at 28% (vs. 15-20% for stocks). Consider holding GLD in tax-advantaged accounts like IRAs.