Wall Street Veteran: “Watch Gold in 2020”

“Watch gold in 2020,” the vice-chairman of private wealth solutions at Blackstone said on “Squawk on the Street.” “It has a chance to be an interesting investment.”

“Wien’s comments Tuesday came as gold rose to its highest levels in about six weeks,” a CNBC report noted. “Spot gold prices hit their highest since Nov. 7 at $1,489.52. U.S. gold futures also edged up 0.3%, to $1,492.80. Looking at 2020 more broadly, Wien said he didn’t think any of the major risks to the long-running market rally are likely to materialize.”

For many investors, gold is the standard in precious metal investing, which has become more accessible than ever thanks to options via an exchange-traded fund (ETF) wrapper like the SPDR Gold MiniShares (NYSEArca: GLDM).

Gold ETFs can be bought and sold freely via an exchange when compared to physical gold. As such, investors can utilize the hedging properties of gold without having to endure the costs of actually owning and storing the asset like they would with physical gold.

For GLDM investors specifically, the ETF offers the following benefits:

  • The investment objective of SPDR® Gold MiniShares Trust (GLDM) is for the Shares of GLDM to reflect the performance of the price of gold bullion, less GLDM’s expenses
  • Shares of GLDM are designed for investors who want a cost-effective and convenient way to invest in gold and will be offered on a continuous basis
  • For many investors, costs associated with buying and selling the Shares in the secondary market and the payment of GLDM’s ongoing expenses will be lower than the costs associated with buying and selling gold bullion and storing and insuring gold bullion in a traditional allocated gold bullion account

Traders looking to use leverage can look at the Direxion Daily Gold Miners Bull 3X ETF (NYSEArca: NUGT), which makes a play on gold miners. NUGT seeks daily investment results, before fees and expenses, of either 300%, or 300% of the inverse (or opposite), of the performance of the NYSE Arca Gold Miners Index.

The index is a modified market capitalization-weighted index comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in mining for gold and, to a lesser extent, in mining for silver. The Index will limit the weight of companies whose revenues are more significantly exposed to silver mining to less than 20% of the Index at each rebalance date.

For more market trends, visit ETF Trends.