While gold has been ticking higher the last few months, the market for the precious metal as an investment is getting equal demand as a gift.
“Frankincense and myrrh aren’t setting the commodities markets on fire, but gold is in high demand—as both Christmas gift and investment—for the second mid-pandemic holiday season in a row,” a Quartz article says.
In terms of its merit as an investment, gold has seen a better year thanks to a rising dollar amid a recovering economy. Nonetheless, with market headwinds like inflation and COVID-19, it could continue to push higher, making it a gift that keeps giving.
“Daniel Fisher, the CEO of Physical Gold, which sells gold coins and bars, saw it first in November 2020. He called it an ‘extraordinary’ time, in which his turnover jumped 2,000% compared to November 2019,” the Quartz article says further.
“’We couldn’t pick up the phone fast enough,’ he said,” the Quartz article adds. “Physical Gold sells through its web site but also takes orders over the phone, and it was through those conversations with new customers that Fisher and his staff learned of the rising popularity of gold as a stocking-stuffer.”
A Pair of ETF Options for Gold
Investors looking for ways to own gold outside of traditional coins or bars can opt for gold funds. One such fund to consider is the Sprott Physical Gold Trust (PHYS), which gives investors easy access to gold exposure with the option to convert their ownership shares to physical gold.
PHYS invests and holds substantially all of its assets in physical gold bullion. It seeks to provide a secure, convenient, and exchange-traded investment alternative for investors who want to hold physical gold without the inconvenience that is typical of a direct investment in physical gold bullion.
Another option for investors who also want to add silver to their portfolio mix along with gold is the Sprott Physical Gold and Silver Trust (CEF). CEF is a closed-end trust that invests in unencumbered and fully-allocated physical gold and silver bullion in London Good Delivery bar form.
Like PHYS, the goal of CEF is to provide a secure, convenient, and exchange-traded investment alternative for investors who want to hold physical gold and silver without the inconvenience that is typical of a direct investment in physical bullion.
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