Are you holding back your cash stash during this COVID19 period? Worried about a 2nd wave coming that might hit the equity market? Or are you still holding on to equities funds and hope to have more bull runs? (Equities have rebounded back after the sharp fall during March).
If you are, then a “gold” ETF fund might be an alternative for you. Historically, gold is the safe haven when the equities market doesn't perform. Good news is there’s a number of gold mutual funds available to the average Joe like us, which correlate with the actual physical gold price. There’s no need to buy an ounce of gold.
If you are new to investing, give it a shot and start your investment journey and learn along the way, without bursting your little pocket.
I’m just a phone call away! :)
“The recent surge in gold prices to new all-time highs has substantially outpaced both the rise in real rates and other US dollar alternatives, like the Euro, Yen and Swiss Franc. We believe this disconnect is being driven by a potential shift in the US Fed towards an inflationary bias against a backdrop of rising geopolitical tensions, elevated US domestic political and social uncertainty, and a growing second wave of Covid-19 related infections. Combined with a record level of debt accumulation by the US government, real concerns around the longevity of the US dollar as a reserve currency have started to emerge,” explained Goldman strategist Jeffrey Currie.
Gold prices have powered higher (despite the stock market’s surge from the March lows) to nearly $2,000 an ounce, an all-time high. Total gold holdings in gold-backed ETFs is at a record, seeing inflows in 18 straight weeks, according to Bloomberg data. The move has spread to gold focused equities such as Freeport McMoran (up 24% in the past six months) and of course the SPDR Gold Trust ETF (up 20% in the last six months).”
“Goldman’s Currie now expects gold prices to reach $2,300 an ounce within the next 12-months. Currie’s bullish take on the price of gold is consistent with what other experts have told Yahoo Finance.”
“Gold is an enormous market, mostly liquid. Concurrent with the next downdraft in equities we’ll see gold smashing through $1,800 an ounce and continuing on its way to more than $2,000 by the end of the year,” Sprott CEO Peter Grosskopf said on Yahoo Finance’s The First Trade in late June. Clearly that call was dead on accurate.”