The place for gold as a timeless hedge still stands. Gold price has been recovering since its 10.5% depreciation in 1Q21, and a lower US Treasury yield sets the stage for gold in the coming months. The DBS Chief Investment Office believes this is not the start of a gold bear market and there is potential for gold to trade towards our price target of USD2,000/oz by the end of the year.
Gold still has its place today in a long-term diversified portfolio, and constitutes 8% of our balanced portfolio. Consider building up gold as a hedge against the fear of rising inflation and weakening currency – a little bit can definitely go a long way.
iShares Gold Trust (IAU US) and VanEck Vectors Gold Miners ETF (GDX UP) are available on Online Equity TradingiShares Gold Trust
iShares Gold Trust is an investment fund incorporated in the USA. The Fund issues shares representing fractional undivided beneficial interests in its net asset.
The assets of the Trust will consist primarily of gold held by the custodian on behalf of the Trust.
VanEck Vectors Gold Miners ETF
With higher demand for gold, we believe it will be a production growth story this year for miners.
The ETF tracks the performance of the NYSE Arca Gold Miners Index. The ETF invests in materials stocks of all cap sizes across the globe. Its largest allocation is in North American companies, principally those domiciled in Canada.
Gold Linked Note
Enhance your USD yield with a Gold Linked Note.
A Gold Linked Note (GLN) is a yield-enhancing structured product where gold is used as the underlying instrument. Its tenor is generally short term, ranging from one month to a year, and can be tailored to suit your needs, based on your choice of certain parameters, including the strike rate and tenor.
The GLN is well positioned for good yield when the gold price stays stable or mildly bullish, and the implied volatility is high.
Please contact your RM for more information on the product ideas.
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More reasons to have gold in your portfolioFor the latest updates on Investment Strategy, please visit Market Insights.
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