Gold and related ETFs are shining, with bullion prices hitting a three-and-half month high, as more investors look to the benefits of the precious metal to diversify a traditional portfolio of stocks and bonds.
The SPDR Gold Shares (NYSEArca: GLD), the largest gold-related ETF on the market, has experienced its longest back-to-back streak in its history since inception, rising 6.3% since its December 11, 2017 lows. Over the past year, GLD returned 13.0% and ended 2017 with its largest annual rise since 2010.
With the U.S. equity markets hitting record highs and market volatility as reflected by the CBOE Volatility Index hovering near record lows, George Milling-Stanley, Head of Gold Strategy at State Street Global Advisors, argued that investors should look to gold ETFs such as GLD as a staple asset of choice for a well diversified investment portfolio.
“GLD has earned its stripes and helped gold earn its stripes as a mainstream investment,” Milling-Stanley told ETF Trends in a call. Looking ahead, the yellow metal may be “stronger to the upside as gold encourages me to become more optimistic.”
On Demand Webcast: 2018 Gold Outlook and Trends