By Ambrose O’Callaghan
Gold stands as one of the oldest and most dependable stores of value. Because of this, many investors still turn to the yellow metal as a suitable hedge against inflation or a volatile market. In this piece, we will examine the bullish case for exposure to gold as it continues to trade near its all-time highs in September 2024. After, we can look at how Harvest ETFs provides investors the opportunity to access to the biggest names in the gold mining space.
Why gold has surged in 2024 – And where it is going
In the early afternoon trading on Thursday, August 29, 2024, the spot price of gold was trading at US$2,561 per ounce and reflected a rally in late August after losing momentum earlier.
A report released in early August revealed an uncharacteristically weak job growth in the month of July 2024. In response, the stock market retreated, and many expected an interest rate cut. However, strong domestic economic indicators were released afterward which improved investor outlook
Gold staged a solid rally in the final days of August, buoyed by comments that were made by US Federal Reserve chairman Jerome Powell on Friday, August 23, 2024. In the speech, Powell declared that “The time has come for a policy to adjust.” Powell said that inflation had contracted closer to the Federal Reserve’s target of 2%. He also expressed concern when it came to the labour market.
“The upside risks to inflation have diminished,” Powell continued. “And the downside risks to employment have increased.”
The rising odds of falling rates is a bullish indicator for the yellow metal going forward. Further gold has benefited from the geopolitical uncertainty that prevails. On the demand side, we have seen countries like India, China, and Russia made pivots toward gold in 2024. For investors any pullback in the price of gold will likely be viewed as a solid buying opportunity.
How the Harvest Global Gold Giants Index ETF stands out
The Harvest Global Gold Giants Index ETF (HGGG:TSX) is designed to give investors gold exposure through profitable large-scale gold miners. This is meant to minimize the impact of fluctuating gold prices for a portfolio, particularly on the downside. HGGG has climbed 21% in the year-to-date period as of close on July 31, 2024. Since inception, HGGG has delivered annualized returns of 9.5%.
Some of the big names in this portfolio include top gold miners like Newmont Corporation, Kinross Gold, Agnico Eagle Mines, and B2Gold. Gold miners have been huge beneficiaries of the surge in the metal’s spot price.
In a nutshell, gold continued to benefit from shifting policy on interest rates and geopolitical uncertainty. So, investors looking to reap these benefits can look to the Harvest Global Gold Giants Index ETF that provides a longstanding source of defensiveness and ballast that can fit their portfolios.
Disclaimer
Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). Please read the relevant prospectus before investing. The indicated rates of return are the historical annual compounded total returns (except for figures of one year or less, which are simple total returns) including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The funds are not guaranteed, their values change frequently, and past performance may not be repeated. Tax investment and all other decisions should be made with guidance from a qualified professional. The content of this article is to inform and educate and therefore should not be taken as investment, tax, or financial advice.
