Forbes – The demand for commodity ETFs continues to sizzle as the WSJ reported today that John Paulson and George Soros and a slew of other hedge fund giants are using GLD , or SPDR Gold Shares as its proxy for the shiny yellow metal. In the last year gold is up about 31% .
Two interesting points here. One is that the WSJ points out that gold may not be a very good hedge for stocks any more since it is turning out to be strongly correlated to the stock market. Stocks go up and so does gold. What will happen if the stocks decline sharply?
