Gold Hits Another Record High at $4,000 Per Ounce

Gold doesn’t appear to be losing its luster. The precious metal hit another record high today by crossing the $4,000 per ounce price mark. A weakening dollar from further rate cuts, geopolitical risks, and other macroeconomic factors continue to create an environment to help sustain its rally.

Gold is up 50% for the year, gaining further momentum from ongoing market uncertainty permeating the capital markets in the current environment. Central bank purchases have also been a factor in sustaining that momentum, as global de-dollarization continues.

Gold’s strength has also spawned various permutations of the traditional 60-40 stock-bond portfolio. Some advisors have been recommending that investors split the bond allocation evenly with gold to create a 60-20-20 portfolio. Either way, gold is almost imperative in any portfolio, given its current upside.

“Gold is a very excellent diversifier in the portfolio,” said famed investor Ray Dalio. “If you look at it just from a strategic asset allocation perspective, you would probably have something like 15% of your portfolio in gold…because it is one asset that does very well when the typical parts of the portfolio go down.”

As gold continues its climb, consider getting flexible exposure using the Sprott Physical Gold Trust (PHYS). The fund gives investors easy pure-play gold exposure sans the logistical challenges associated with storing physical gold itself. Shares of PHYS trade on a market exchange for easy access. However, it adds a degree of flexibility by allowing investors to convert their fund shares into physical bullion if they seek a more tangible investment feel.

AGG data by YCharts

Capture Delayed Move With Miners

Gold miners may exhibit upside once the precious metal has already rallied higher. With that, consider using a fund like the Sprott Gold Miners ETF (SGDM) for easy exposure and positioning for this future upside. Rather than build a portfolio of individual mining stocks, SGDM adds broad-based exposure that mitigates the overconcentration risk that comes with investing in shares of single companies.

Per its baseline fund description, SGDM seeks investment results that correspond generally to the performance of the Solactive Gold Miners Custom Factors Index. This index tracks the performance of large-cap gold companies that trade on Canadian and U.S. exchanges.

For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.

An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.

Past performance is no guarantee of future results.  One cannot invest directly in an index.

Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.

Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.
Exchange Traded Funds (ETFs):  SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL
Physical Bullion Funds:PHYS, PSLV, CEF, and SPPP.

Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.

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