Gold’s Surge as Central Banks Stock Up – 3/16

Gold just crossed $2,160 – and could be headed to $2,500.

 For one, central banks are still loading up gold. 

 According to Bloomberg, “Central-bank buying maintained a breakneck pace, with annual net purchases of 1,037 tons last year, just 45 tons shy of the record set in 2022, the WGC said in the report. It expects central-bank buying to top 500 tons this year.” In addition, gold is surging in hopes the Federal Reserve will start cutting interest rates in the second half of the year.

Two, we have an upcoming Federal Reserve meeting in March, which could give gold another boost. Three, with the latest US jobs data, there are hopes the Federal Reserve could start cutting rates earlier than expected.

And, according to ING analysts, “We expect gold prices to trade higher this year as safe-haven demand continues to be supportive amid geopolitical uncertainty with the ongoing wars and the upcoming U.S. election.”

That being said, investors may want to consider buying physical gold, gold stocks – like Barrick Gold and Newmont – and even ETFs such as:

VanEck Vectors Gold Miners ETF (GDX)

One of the best ways to diversify at less cost is with an ETF, such as the VanEck Vectors Gold Miners ETF (GDX). Not only can you gain access to some of the biggest gold stocks in the world, you can do so at less cost.  With an expense ratio of 0.51%, the ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals to name a few.

Sprott Junior Gold Miners ETF (SGDJ)

With an expense ratio of 0.35%, the Sprott Junior Gold Miners ETF (SGDJ) seeks investment results that correspond to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index. The Index aims to track the performance of small-cap gold companies whose stocks are listed on regulated exchanges.