Gold has shined as a hedge against global risk and the return to more accommodative monetary policies in 2019, but will these conditions persist and continue to support the precious metal through the new year?
On the upcoming webcast, What’s on the Horizon for Gold in 2020, George Milling–Stanley, Chief Gold Strategist, State Street Global Advisors; Alistair Hewitt, Director, Head of Market Intelligence, World Gold Council; and Juan Carlos Artigas, Director, Investment Research, World Gold Council, will review some of the highlights of the gold market in 2019, their outlook for 2020 and outline where gold can fit in a diversified portfolio in the year ahead – especially as investors face adjusting portfolios to account for lower future expected bond yields and returns.
ETF investors who are interested in diversifying their portfolios with gold exposure now have a number of options to choose from. For example, the SPDR Gold Shares (NYSEArca: GLD), the most liquid and largest physically backed gold-related ETF on the market, has been the go-to ETF option for gold investments.
Investors have looked to GLD as a quick and easy way to gain exposure to gold price movements as they hedge against market risks, help protect their purchasing power in times of inflationary pressures or capitalize on increasing demand from the emerging markets with a growing middle-income class. In the current environment of ongoing global geopolitical uncertainties, political risks here at home and central banks cutting interest rates to bolster growth around the world, many are turning back to physical gold as a way to safeguard their wealth and purchasing power.
The World Gold Council and State Street Global Advisors also expanded on the gold ETF theme with another gold offering that provides the cheapest exposure along with a low share price to those investors seeking exposure to the yellow precious metal. The SPDR Gold MiniShares Trust (NYSEArca: GLDM) has a 0.18% expense ratio and was initially listed at a per-share trading price of 1/100th of an ounce of gold, as represented by the LBMA Gold Price PM (USD). The low cost gold ETF has quickly been attracting attention from buy-and-hold investors who are interested in the long-term benefits of incorporating a cheap gold investment in a diversified portfolio
GLDM’s strategy is identical to GLD – both are physically backed by gold bullion and are structured as grantor trusts. However, GLD’s price was 1/10th the price of gold in ounces at its inception while the Gold MiniShares ETF was priced at 1/100th the price of gold in ounces.
Financial advisors who are interested in learning more about the gold market can register for the Wednesday, December 11 webcast here.