You may be thinking how can one research gold, well there are many different ways to gain exposure to gold. There is the ETF side, which allows you to be exposed to the movement of gold. Gold can also be traded on the futures market, which may or may not fit into your current investing plan. Lastly there is the physical gold that you can purchase and store it in a safety deposit box or a safe in your home.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include SPDR Gold income statement, its balance sheet, and the statement of cash flows. Potential SPDR Gold investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although SPDR Gold investors may use each financial statement separately, they are all related. The changes in SPDR Gold's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on SPDR Gold's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of SPDR Gold
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of SPDR Gold performance into the future periods or doing a reasonable stock valuation. The intrinsic value of SPDR Gold shares is the value that is considered the true value of the share. If
the intrinsic value of SPDR is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares SPDR Gold. Please read more on our
fundamental analysis page.
An Additional Perspective On SPDR Gold Shares
The media likes to talk about gold when the markets begin to fall and people become a little nervous about the day to day movements. Gold though is not going to be the best fit for everyone because each investing agenda is different. Diversification is healthy but you do not want to be invested in too many different markets.
So as previously stated, you can look at gold as a hedge against uncertainty in the market, which is generally how most will see the equity. There are obviously other was to hedge your investments such as going into cash or finding inverse ETF’s that track the market you are invested in but rise if the market declines. Another play is when the US Dollar moves in either direction because commodities are greatly affected by the value of the Dollar.
With that, there are risks with gold and first is that you need to know how it will react with your current holdings. Be sure to understand if it will benefit you or bring on unnecessary risk. Secondly, gold does tend to move a little more than other investments, which means you may have added volatility to your current portfolio. Lastly, it simply may not be for you and you should not feel guilty for not owning it.
If you are looking at the market, look at gold futures or the ETF ticker GLD, which can give you an idea of where the gold market is at. You can also gain exposure by looking at the mining companies, but with those you have to consider company specific risk. After you’ve completed your research and you still need assistance, reach out to an investing professional and they can help to point you in the right direction. Gold will be around for years to come, but it may not be the best play when volatility enters the market.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of SPDR Gold Shares. Please refer to our
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