Q: Planning to hedge the tariff fiasco by investing in gold.
1. Is this a good idea do you think?
2. Would you go with a miner such as AEM or another-suggestions.
3. Are the gold miners going to be subject to tariffs?
4. Would you go with an ETF- and if so some suggestions please?
Thanks
Jeff
1. Is this a good idea do you think?
2. Would you go with a miner such as AEM or another-suggestions.
3. Are the gold miners going to be subject to tariffs?
4. Would you go with an ETF- and if so some suggestions please?
Thanks
Jeff
5i Research Answer:
1) Gold has surged with uncertainty. We do think some exposure still makes good sense. If the US weakens then the US$ likely will as well, and this can be a big driver of the gold price. 2) We would still prefer AEM, with other large caps also looking good, FNV, WPM. 3) Gold is easily transported and has a global price. We would not expect much tariff impact, if at all (some costs may increase at mines). For general exposure, we would be very comfortable with an ETF such as XGD for diversification within the sector.