Q: If you were looking to put on a gold trade at this time, would PHYS .TO be a good choice
It is up 38% in the past 52 weeks.
Do you see a good risk/ reward upside, in gold at this time? Or is it too late ?
Would you suggest another stock or ETF for gold exposure instead of PHYS.TO?
It is up 38% in the past 52 weeks.
Do you see a good risk/ reward upside, in gold at this time? Or is it too late ?
Would you suggest another stock or ETF for gold exposure instead of PHYS.TO?
5i Research Answer:
We would be quite comfortable with PHYS as one of our favourite bullion ETFs. Gold we think still looks good: it is sensitive to the US dollar and rates, and expected moves in both should be positive for gold. We are approaching some seasonal buying as well. Bullion can act very differently than gold stocks. Choosing one or the other depends on goals. For 'protection' against whatever might happens, bullion is likely better. Gold stocks (AEM, WGX, FNV) can do better at times than bullion if confidence is running high. Today, we might expect stocks to outperform, but that does not mean investors cannot still have physical exposure.