skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. ORA: In a situation where you wanted 5% gold exposure as a hedge against negative market volatility/downside risk, etc. [Aura Minerals Inc.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: In a situation where you wanted 5% gold exposure as a hedge against negative market volatility/downside risk, etc., would you prefer IAUF or some combination of ABX/BTO/ORA?
Thanks for this!
David
Asked by David on January 15, 2024
5i Research Answer:

IAUF is fairly small, but for a hedge we would prefer it. In a market crisis or black swan event, gold stocks can do well, but at the end of the day they are still 'stocks' and can decline. In 2008, gold itself rose but gold stocks fell. Thus, we would prefer bullion over stocks, if one is seeking 'insurance'. 

Let us help YOU reach your financial goals today!

Start your FREE trial today and enjoy all the benefits of a 5i Membership including:

  • Access to a team of experts ready to answer your investments question 
  • Instant access to over 100,000 archived questions
  • A community of like-minded investors
  • Peace of mind knowing that 5i Research has only YOUR best interests in mind