| Dollar Dies, Gold Soars |
Gold just hit a new record high.
Last trading at $3,742, the metal could test $4,000 – with investors hunting for safe havens with economic uncertainties.
Helping, China now wants to become a custodian of foreign sovereign gold reserves, meaning it wants to store gold bought by other countries.
According to Business Insider, “The move is bullish for the price of gold in two ways. First, it incentivizes more people — in this case, governments — to buy the metal. Second, by making it a national financial priority, China is establishing itself as yet another major player in a system designed to do one thing: keep buying and holding gold.”
In addition, analysts at Deutsche Bank say that gold prices could soar above $4,000 by the end of the year. Analysts at Fidelity say the safe-haven metal could soar to $4,000 by the end of next year. Goldman Sachs and Bank of America are also calling for $4,000 gold by 2026.
We also have to consider that we’re likely to see even more interests rate cuts from the Federal Reserve. While a good deal of gold stocks and exchange traded funds (ETFs) have exploded higher with gold, there’s still plenty of upside remaining.
In fact, here are a few ETFs you may want to consider.
VanEck Vectors Gold Miners ETF
One of the best ways to diversify at less cost is with an ETF, such as the VanEck Vectors Gold Miners ETF (SYM: 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.
The ETF also pays an annual dividend. In December 2024, it paid a dividend of just over 40 cents per share. In December 2023, it paid a dividend of just over 50 cents per share.
Even better, shares of mining stocks often outperform the price of gold. That’s because higher gold prices can result in increased profit margins and free cash flow for gold miners. In addition, top gold miners often have limited exposure to riskier mining projects.
Sprott Junior Gold Miners ETF
With an expense ratio of 0.5%, the Sprott Junior Gold Miners ETF (NYSEARCA: SGDJ) seeks investment results that correspond (before fees and expenses) generally 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.
Some of its top holdings include Lundin Gold Inc., Seabridge Gold, Equinox Gold, Victoria Gold, Westgold Resources, Osisko Mining, K92 Mining Inc., Novagold Resources, Regis Resources, New Gold Inc., Sabina Gold & Silver, Argonaut Gold, Centerra Gold, Coeur Mining, Skeena Resources, and K92 Mining to name a few.
Global X Gold Explorers ETF
With an expense ratio of 0.65%, the Global X Gold Explorers ETF (NYSEARCA: GOEX) invests in companies involved with gold deposit exploration. Some of its top 50 holdings include Coeur Mining, Lundin Gold, Hecla Mining, New Gold Inc., SSR Mining, and Alamos Gold. GOEX also pays a semi-annual dividend. Its last dividend of just over 71 cents was paid in December 2024. Before that, it paid a dividend of $0.006017 per share.
Since the start of the year, the GOEX ETF rallied from about $29.94 to a recent high of $57.44. From here, with gold still pushing higher, we’d like to see the GOEX ETF rally to $65 near term.
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Written by Ian Cooper