Forget Stocks And Bonds - Here's Why Gold Is The Best Investment Right Now

Author: Aaron Bry | August 30, 2023 01:18pm

You might think bonds or T-bills look intriguing right now, with some offering nearly 5% back guaranteed. Or maybe you’ve been looking at Walt Disney Co’s (NYSE:DIS) stock, down 25% in the last year. But, according to DataTrek co-founder Nick Colas, it's time to bypass bonds and struggling stocks; gold is the investment to focus on.

Colas points out that despite the fact that gold has underperformed the S&P 500 in the United States, it has held up better than most global stocks and equities. Colas also points out that demand for gold comes from different sources, including central banks wanting to bolster their balance sheets.

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Colas argues that because of an increase in demand for gold from central banks throughout the world, gold prices should steadily increase. Colas says that any increase in global geopolitical tensions could help push gold prices even higher. 

“Now, if you think we're going to have an outbreak of global peace, then gold is probably not a great trade, because central banks will see much less interest and not want to own as much gold,” Colas said in a recent YouTube video and blog post. “However, the current situation feels quite different. We have geopolitical tensions with Russia, with China. Turkey has its own issues.”

How To Trade Gold: If you want to go long gold but don’t want to go out and buy physical gold, there are plenty of ETFs and other funds available on U.S. markets that provide solid gold exposure. Here are five gold ETFs that could be good options for longing the precious metal: 

SPDR Gold Trust (NYSE:GLD)

SPDR Gold MiniShares Trust (NYSE:GLDM)

iShares Gold Trust (NYSE:IAU)

VanEck Gold Miners ETF (NYSE:GDX)

Goldman Sachs Physical Gold ETF (BATS:AAAU)

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Photo: Shutterstock

Posted In: AAAU DIS GDX GLD GLDM IAU