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Fear and Love Will Help Drive Investments for Gold ETFs This Year

from ETF Trends February 12, 2019

Fear and Love Will Help Drive Investments for Gold ETFs This Year

ETF Trends hosted a webcast featuring U.S. Global Investor’s CEO Frank Holmes about how stock market volatility shined a light on gold toward the end of 2018. In an article recapping the webcast, ETF Trends writes that gold could see a boost in demand due to the Love Trade and the Fear Trade. The Love Trade is seasonal gold jewelry buying in countries where gift-giving is considered auspicious, while the Fear Trade is driven by fear of uncertainty in the markets due to factors such as interest rates, regulations and the recent U.S.-China trade tensions.

In discussing gold’s role in a portfolio, Frank Holmes advocates for the Golden Rule, which recommends a 10 percent portfolio weighting in gold and gold-related assets. One way to invest in the gold space is with the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU), which focuses on investing in gold royalty companies. ETF Trends describes GOAU as a “smart beta offering that tracks a specialized or rules-based index to help hone in on quality players in the gold mining space.”

 

Read the full article, “Fear and Love Will Help Drive Investments for Gold ETFs This Year,” on ETFtrends.com.

U.S. Global Investors has authored and is responsible for the summary on this page. All opinions expressed and data provided are subject to change without notice. Opinions are not guaranteed and should not be considered investment advice.

ETF Trends publisher Tom Lydon is on the board of U.S. Global Investors.

Smart beta refers to investment strategies that emphasize the use of alternative weighting schemes to traditional market capitalization based indices.