SPDR Gold Shares
The ushering in of QE3 also should result in a drop in the value of the U.S dollar. As a result, gold — traditionally considered a hedge against inflation — should get a lift. It also should get traction as an alternative to the U.S. dollar as central banks start using gold as part of their reserves.
An effective and simple way to benefit from the rise in gold is the SPDR Gold Shares (NYSE:GLD) exchange-traded fund.
The GLD is backed by physical gold stored in vaults in London. The fund is highly liquid — averaging daily volume of about 7.1 million units — which means investors enjoy tight bid/ask spreads. GLD also has a cheap expense ratio of 0.4%.
GLD has gained about 12% year-to-date, with most of that coming in anticipation of/after QE3.