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MARKETS LIVE BLOG:

STOCK FUTURES DIG OUT OF ISRAEL STRIKE-FUELLED TUMBLE

Shares of Netflix, the first of the megacap techs to report, slide in pre-market trading

Why Gold ETFs Are Shining Bright Amid Coronavirus Crisis

Neena Mishra

  • (1:10) - What Has Been The Cause For The Recent Gold Rally?

  • (8:05) - Why Have Gold ETFs Gain So Much Popularity?

  • (11:35) - Can You Still Consider Gold A Safe Investment?

  • (19:10) - SPDR Gold Trust and Gold MiniShares ETF: GLD & GLDM

  • (24:05) - How Much Gold Allocation Should Investors Have?

  • (27:30) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I speak withJoseph Cavatoni, Head of Americas at the World Gold Council, about gold and gold ETFs.

Gold is up more than 12% this year and is currently trading at its highest level in about eight years, whereas the S&P 500 ETF SPY is down about 15%. Coronavirus related worries, record low interest rates, oil’s collapse, and massive monetary and fiscal stimulus being launched all over the world are boosting the precious metal’s appeal.

Bank of America recently raised its 18-month gold-price target to $3,000 an ounce, in a report titled “The Fed can’t print gold.” Popular gold ETFs have seen record inflows in past few weeks. Why is investor appetite for gold ETFs soaring?

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The World Gold Council has partnered with State Street on 3 gold ETFs including the most popular gold ETF—the SPDR Gold Shares GLD. Last year, they launched the SPDR Gold MiniShares Trust GLDM, one of the cheapest gold ETFs. How should investors choose between GLD and GLDM?

What is the role of gold in a diversified portfolio? How much gold should investors own? Should the allocation to gold include gold miners too which are leveraged plays on gold. The most popular gold mining ETF—the VanEck Vectors Gold Miners ETF GDX has gained over 15% year-to-date. Tune into the podcast to learn more.

Make sure to be on the lookout for the next edition of ETF Spotlight and also make sure to subscribe! If you have any comments or questions, please email podcast@zacks.com.

[In full disclosure, Neena owns shares of GLDM in the ETF Investor Portfolio.]

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SPDR Gold Shares (GLD): ETF Research Reports
 
SPDR Gold MiniShares Trust (GLDM): ETF Research Reports
 
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Zacks Investment Research