With markets looking increasingly volatile, investors might be interested in looking at safe-haven investments. Safe haven investments are assets that are expected to hold their value or appreciate during times of economic uncertainty. One such asset is gold, which is known for its ability to retain its value during market downturns. In fact, gold has been used as a store of value for thousands of years and is considered a safe-haven investment.
Gold stocks and ETFs are an alternative to stocks during times of market uncertainty and inflation. Gold stocks are shares of companies that mine or produce gold, while gold ETFs are exchange-traded funds that invest in physical gold or gold futures. Investing in gold stocks or ETFs can provide investors with exposure to the precious metal and help diversify their portfolio.
One gold ETF that may be worth considering is SPDR Gold Shares (AMEX: GLD). GLD is the largest and most popular gold ETF, with over $44 billion in assets under management. GLD seeks to track the price of gold bullion and is backed by physical gold held in vaults. GLD has a low expense ratio of 0.40% and has seen strong performance in recent years.
Gold futures rose sharply on Monday amid the regional banking crisis, with SPDR Gold Shares (AMEX: GLD) also settling higher during the day. This is a clear indication of how gold can provide a safe haven for investors during times of economic uncertainty. Gold prices tend to rise during times of economic turmoil as investors flock to the precious metal as a safe haven.
Gold started the year off with a bang, but has since cooled off in the last few weeks. However, this may be a good time for investors to consider adding gold to their portfolio. Holding only USD can leave investors vulnerable to currency fluctuations and inflation. Investing in gold stocks or ETFs can provide diversification and help protect against inflation.
SPDR Gold Trust ETF (AMEX: GLD) is one gold ETF that investors may want to consider. With the current macroeconomic environment plagued by persistent inflation and aggressive measures to combat it, gold may be an attractive investment option. GLD provides investors with exposure to gold without the need to purchase and store physical gold.
Annual inflation dropped from 6.4% to 6% in November 2021, the smallest annual gain since September 2021. However, inflation is still a major concern for investors. Investing in gold stocks or ETFs can provide a hedge against inflation and help protect against the erosion of purchasing power.
There are several gold ETFs available for investors to choose from. These seven gold ETFs provide investors with numerous ways to play the metal, from direct exposure to stock-related angles, on the cheap. Some of the other popular gold ETFs include iShares Gold Trust (AMEX:IAU), GraniteShares Gold Trust (AMEX:BAR), and VanEck Vectors Gold Miners ETF (AMEX:GDX).
Investors who are interested in adding gold to their portfolio may want to consider consulting with a financial advisor. A financial advisor can help investors determine the appropriate allocation to gold and help identify the best gold stocks or ETFs to invest in based on their investment goals and risk tolerance.
In conclusion, investing in gold stocks or ETFs can provide investors with exposure to the precious metal and help diversify their portfolio. During times of market uncertainty and inflation, gold has historically been a safe-haven investment. With a wide range of gold ETFs available, investors have numerous options to choose from. Consult with a financial advisor to determine the appropriate allocation to gold based on your investment goals and risk tolerance.
