The problem with gold ETF

Also in Japan (Tokyo Stock Exchange and the Osaka Securities Exchange) now ETF is a number listed from 2007. That although many of these are unpopular a volume also Mamanaranai state, it is a gold ETF that one of the few exceptions is to invest in "gold (Gold)".

Gold and stock markets and the US dollar is characterized by the fact that prone to price movements of inverse correlation. Especially since the sub-prime crisis, with speculation that the value of the dollar from the United States of deficit expansion risk is going to decline, gold price is a haven from the dollar is on the rise, update the highest value ever in 2009 autumn Island was.

So far the gold investment could not be performed only wealthy, it is possible that gold ETF is listed, even ordinary people can now be investment from small (about 10,000 yen), making it the popular.

Gold ETF are two types have been listed, one is SPDR Gold Shares of the Tokyo Stock Exchange [Stock code: 1326], the other one is OSE gold price-linked exchange-traded funds [Securities code: 1328] is. Was listed in the person ahead of 1328 of the Osaka Securities Exchange, but trading volume also I overwhelmingly people of 1328 there were many, both the volume (amount basis) in recently become roughly the same as before and after 300 million yen the 1st year.

However, in this gold ETF, lurking big risk there is. There is a problem in those of 1328 of OSE listed, this ETF is the stuff of a format called that do not possess the cash assets "linked notes (aka · ETN)".

Towards the TSE of 1326 so ETF has issued a gold-kind as collateral, even if the bankruptcy is if the issuer is a mechanism that investment funds can come back because there is a "gold" of the underlying asset. However, since 1328 the case of the OSE is a link-bonds, linked notes of the issuer (seems Norwegian financial institutions) is not only just to have a contract to guarantee the price. If if the company of this Norway is bankrupt, investment funds is the high may not come back at all.

Actually this link bonds · ETN, such as the Shanghai stock ETF [1309] and Brazil stock ETF [1325] other than 1328 Fri, true the majority of foreign stocks and commodity-related ETF that have been published since 2007. This means that these ETF will be the thing you are having all the same problems. I think the thing is not to collapse so easily, but you will need to understand that lurking is such potential risks when investing.

With regard to investment in at least gold ETF, rather than a problem 1328, you should invest in 1326 · SPDR Gold Shares that there is support for the gold of the actual products.