What Is the Best Gold ETF to Buy in 2018?

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.

Money Morning Resource Specialist Peter Krauth predicts gold prices could climb as high as $1,500 by the end of 2018, roughly 14% above current levels.


Because of our bullish outlook, Money Morning readers have been asking us, “What is the best gold ETF to buy in 2018?”

We’re going to show you the best gold ETF to invest in this year in just a bit.

But first, here’s why we are so bullish on the precious metal in 2018…

Why Gold Prices Could Climb 14% in 2018

The 2017 bull market for stocks has caused gold to be relatively overlooked. The Dow Jones Industrial Average climbed 24.85% over the past year.

But trends in inflation and interest rates are going to make gold one of the best investments of 2018.

Inflation has now reached its second-highest rate in the last five years, at 1.6%.

As inflation climbs, the purchasing power of the dollar falls. The U.S. Federal Reserve is supposed to keep inflation tamped down. One of its tools to do that is raising interest rates, particularly when the stock market soars.


Here’s Exactly Why Gold Will Soar in 2018

But when inflation rises as it has been, investors get nervous…

Anxious investors move money out of the stock market and into gold if inflation heats up because gold is traditionally a hedge against inflation. That’s because gold’s value rises as the dollar’s weakens.

And gold is also a hedge against global crises, such as threats of nuclear war between the United States and North Korea, which create uncertainty in global markets.

Urgent: Executive Editor Bill Patalon just saw something on his precious metals charts he’s only seen twice in 20 years. He calls it the “Halley’s Comet of investing” – and it could lead to windfall profits. Read more

There are plenty of other global events creating uncertainty in 2018 too.

Investors are closely following how Brexit will play out to the spikes of violence in Syria, all of which create instability and uncertainty, and boost the value of gold.

That’s why ahead of gold prices climbing in 2018, now is the perfect time to own the best gold ETF of 2018…

Here’s the Best Gold ETF to Buy in 2018

The SPDR Gold Trust ETF (NYSE Arca: GLD) could be the best gold ETF of 2018.

For investors who don’t want to deal with the hassle of owning physical gold, a gold ETF can be bought and sold as easily and conveniently as a stock.

GLD is backed by the price of gold bars and bullion. That means it’s a proxy for the price of gold, and its share price rises just as the price of the physical metal does. But because GLD trades at $125.15 per share compared to the $1,317.6 per ounce bullion price, investors have more flexibility in how much money they allocate toward gold.

And unlike owning physical gold, investors won’t need to pay commissions to auction houses or pay to secure their assets.

Over the past 12 months, the GLD stock price has climbed 11.54%, while the price of gold has risen 11.8% in the same time. As gold prices continue to climb in 2018, so will GLD.

The Bottom Line: Gold prices are poised to go higher based on gold’s safe-haven status in times of inflation and rising interest rates. The price of gold per ounce could climb as high as $1,500 by the end of 2018, a 14% increase from today’s prices. The SPDR Gold Trust ETF is backed by gold bullion and bars, and it can be purchased and sold as conveniently as a stock.


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The post What Is the Best Gold ETF to Buy in 2018? appeared first on Money Morning – We Make Investing Profitable.

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  1 comment for “What Is the Best Gold ETF to Buy in 2018?

  1. Geo
    January 4, 2018 at 5:59 pm

    “The SPDR Gold Trust ETF is backed by gold bullion and bars”

    After doing my due diligence into this fund, this seems questionable at best. GLD makes the claim that it is completely supported by physical gold yet it denies your every day investors the right to exchange for any of their listed ‘gold’. This alone means GLD shares are just paper by the day’s end. Moreover, GLD’s prospectus is loaded with weasel clauses that lets the trust get away without the promised gold backing. A good example of this is in the section of the prospectus that states GLD has no right to audit subcustodial gold possessions. I have never heard of any justifiable reason explaining why this audit loophole exists. There are other issues as well from what I’ve read:

    “CNBC’s Bob Pisani also made a highly publicized visit to GLD’s gold vault in a segment called Gold Rush: The Mother Lode. GLD’s administration organized this visit to show that GLD’s gold actually exists. However, the gold bar held up by Mr. Pisani showed a serial number of ZJ6752 which did not show up on the latest bar list during that time. It was later found that this “GLD” bar actually belonged to ETF Securities.”

    “Did anyone try calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD’s insurance? The prospectus vaguely states “The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody.” When I asked about how much of the gold was insured, the representative proceeded to act as if he didn’t know and said they were just the “marketing agent” for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.”

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