Gold never totally goes away. Certain assets take the spotlight, capture investor interest, and play consistent roles in portfolios but behind all that, gold is there. In uncertain times, especially, gold plays its most important role, a source of ballast and stability where other assets flag and flounder. We’ve seen that play out so publicly in past weeks when even the U.S. dollar has dropped while gold rises.
Tuesday, though, saw sharp drops in the price of gold, falling below $2,000 again. This is on the back, according to some analysts, of news of a Russian approved COVID Vaccine, which the global scientific community and some Russian watchdogs have said has been too fast to be safe, as well as news of Democrats and Republicans inching closer to a stimulus package. These developments seem to have increased risk appetites as investors moved away from gold, at least for the short term.
In an uncertain world where news from a research institute in Moscow can shift a commodity price like Gold, one fund provider says there’s a better, even more stable, means of getting gold exposure without necessarily opening investors to the risks of volatile commodity price swings: gold equity ETFs.
