Gold Continues to Shine: A Look at the Current Market Trends
As the world’s top investment manager, it’s crucial to stay ahead of market trends and make informed decisions for your portfolio. With gold futures up approximately 25% year-to-date, it’s clear that the precious metal is hitting new all-time highs.
The Long-Term View on Gold
For investors who may be skeptical about the recent surge in gold prices, it’s essential to take a longer view of the market. The spike in gold prices has been a consistent trend for over a year, starting from early 2024. While past performance is not a guarantee of future success, various economic factors suggest that gold may continue to be a valuable asset in the foreseeable future.
- The threat of additional tariffs
- Increasing trade tensions with China
- Potential disruptions to the Federal Reserve
Exploring Gold ETFs for Your Portfolio
BAR: A Budget-Friendly Gold ETF with Safe Storage and High Integrity
The GraniteShares Gold Trust (NYSE:) offers investors exposure to spot returns by storing gold in London Bullion Market Association (LBMA) good delivery bars. With a competitive expense ratio of 0.17%, BAR provides a cost-effective option for those seeking physical gold exposure.
- BAR neither lends its holdings nor holds any derivatives
- Expense ratio of 0.17% is less than half of SPDR Gold Trust (NYSE:)
- Strong one-month average trading volume of close to one million shares
AAAU: A High-Liquidity ETF for Active Gold Investors
The Goldman Sachs Physical Gold ETF (NYSE:) is structured similarly to BAR, with LBMA good delivery bars in London. While AAAU has a slightly higher expense ratio of 0.18%, it offers a higher asset base and average trading volume for more active investors.
- Expense ratio of 0.18%
- Double the average trading volume compared to BAR
PHYS: A Tax-Efficient ETF That Offers Physical Redemption
The Sprott Physical Gold (NYSE:) provides investors with the option to redeem shares for physical bullion and offers tax advantages, with gains taxed as capital gains. Despite a higher fee of 0.41%, many investors find the benefits of PHYS to be worth the cost.
- Option to redeem shares for physical bullion
- Gains taxed as capital gains
- Annual fee of 0.41%
By exploring these gold ETF options, investors can diversify their portfolios and capitalize on the current market trends surrounding this precious metal.
