Stock of the Day

March 17, 2025

SPDR Gold Shares (GLD)

$276.50
+$1.26 (+0.5%)
Market Cap: $83.11B

About SPDR Gold Shares

SPDR Gold Trust (the Trust) is an investment trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trust's expenses. The Trust's business activity is the investment of gold. The Trust creates and redeems Shares from time to time, but in one or more Baskets (a Basket equals a block of 100,000 Shares). The Trust issues Shares in Baskets to certain authorized participants (Authorized Participants) on an ongoing basis. The creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of gold and any cash represented by the Baskets being created or redeemed, the amount of which will be based on the combined net asset value of various Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received.

SPDR Gold Shares Bull Case

Here are some ways that investors could benefit from investing in SPDR Gold Shares:

  • The current stock price of SPDR Gold Shares is $271.35, reflecting a year-to-date gain of 11.9%, indicating strong performance in the gold market.
  • SPDR Gold Shares provide direct exposure to gold prices without the complexities of physical ownership, making it a straightforward investment option.
  • The trust holds physical gold bullion in secure vaults, ensuring that investors have a tangible asset backing their investment.
  • With a low net expense ratio of 0.40%, SPDR Gold Shares offer a cost-effective way to invest in gold compared to other investment vehicles.
  • The high liquidity of SPDR Gold Shares allows investors to easily buy and sell shares on major stock exchanges, providing flexibility in trading.

SPDR Gold Shares Bear Case

Investors should be bearish about investing in SPDR Gold Shares for these reasons:

  • Investing in SPDR Gold Shares does not provide any dividends, which may be a drawback for income-focused investors.
  • The performance of SPDR Gold Shares is directly tied to gold prices, which can be volatile and influenced by various economic factors, leading to potential losses.
  • As a trust, SPDR Gold Shares may face regulatory risks that could impact its operations and investment strategy.
  • Market fluctuations and changes in investor sentiment towards gold can lead to price declines, affecting the value of SPDR Gold Shares.
  • While the trust is designed to track gold prices, discrepancies can occur due to management fees and other expenses, potentially leading to underperformance compared to the actual gold market.

Gold Breaks $3,000: What's Driving the Rally and How to Invest?

Written By Ryan Hasson on 3/17/2025

Gold bar with money

Gold shattered the $3,000 mark for the first time on Friday, reaching a historic high as investors continue to invest in the metal as a safe haven. The surge comes amid ongoing economic uncertainty fueled by trade wars, tariffs, and broader market instability.

Long-term gold investors are seeing strong returns. The SPDR Gold Shares ETF (NYSEARCA: GLD) has outpaced the S&P 500, climbing nearly 14% year-to-date and over 37% in the past year, extending a now long-term trend.

What’s Driving Gold’s Relentless Rally?

U.S. economic fears and trade tensions did not drive the surge past $3,000 per ounce alone. Several global factors contributed to the rally.

Aggressive central bank purchases, especially from China, which has increased reserves for four consecutive months through February, have played a significant role. Geopolitical risks, including conflicts in Ukraine and Gaza, alongside escalating U.S.-China trade tensions, have further boosted gold’s appeal as a haven.

Another catalyst is expected U.S. Federal Reserve rate cuts, following a significant reduction in late 2024. Lower rates make gold more attractive than yield-bearing assets like bonds. Additionally, strong demand from retail and institutional investors and industrial use of technology add to the momentum. Limited new mining supply further supports the price surge, with forecasts suggesting gold could reach $3,200 if the trend continues.

Goldman Sachs recently noted the potential upside risk to its $3,100 end-2025 base case scenario and its $3,100-$3,300 forecast range. "We believe that central bank gold buying will remain structurally higher than before the freezing of Russian central bank reserves in 2022. We think this is the case even after a potential Russia- Ukraine ceasefire," the bank stated.

How Can Investors Gain Exposure to Gold?

Investors looking to gain exposure to gold without the burden of physically storing it have multiple options. They can invest in gold ETFs or mining companies.

1. Investing in a Gold ETF

The SPDR Gold Shares ETF (NYSEARCA: GLD) directly exposes gold’s price movements without requiring physical storage. The fund aims to reflect the performance of gold bullion minus expenses and has a net expense ratio of 0.4% with $86 billion in assets under management.

Mirroring gold’s performance, GLD hit new all-time highs on Friday, bringing its YTD gain to 13.67%. Over the past year, it has surged nearly 38%, significantly outperforming both the broader market and the tech sector.

2. Investing in a Gold Miners ETF

A gold miners ETF could be a suitable option for investors interested in exposure to gold mining operations while maintaining diversification.

The VanEck Gold Miners ETF (NYSEARCA: GDX) tracks the NYSE Arca Gold Miners Index, which comprises global gold mining companies. Unlike GLD, which directly tracks gold prices, GDX provides exposure to gold mining stocks. While mining stocks can experience amplified gains when gold prices rise, they can also be more volatile due to operational risks and production costs.

GDX is just 1.3% shy of its 52-week high and has surged almost 29% YTD, gaining over 47% in the past year. Its top holdings include some of the world’s largest gold mining companies, including Newmont -11.8 % weighting, Agnico Eagle Mines -11.7 %, Barrick Gold -7.5 %, and Wheaton Precious Metals -7.5 %.

With a Moderate Buy consensus rating and a price target of $43.64, GDX has attracted significant institutional interest. Over the past 12 months, the ETF saw net inflows of $2.09 billion versus outflows of $1.11 billion. In addition to diversification and strong recent performance, GDX offers a 0.92% dividend yield and has a net expense ratio of 0.51%.

The Bottom Line

Gold’s record-breaking rally reflects deepening global uncertainties, aggressive central bank buying, and shifting monetary policies. For investors looking to capitalize on gold’s strength, ETFs like GLD and GDX provide accessible and diversified ways to gain exposure to the precious metal without the complexities of physical ownership.

As gold’s momentum continues, these investment vehicles remain strong options for those looking to hedge against economic volatility.

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