Mining Stocks

Could This Be Ideal Time to Add Gold ETFs to Your Investments?

Gold prices have surged in recent months as falling treasury yields, a weak dollar and significantly increased safe-haven appeal bolstered the metal’s value. The ongoing conflict in Gaza has also had a positive effect on gold prices, increasing the precious metal’s value in the days and weeks after the initial invasion by Hamas and supporting its prices as investors remain wary of the conflict triggering a war in the broader oil-producing region.

With several armed conflicts raging around the world and gold making regular gains, many investors are considering adding gold to their portfolios to gain some stability and protect their assets from losing value. Investors have the option of either buying physical gold bullion and coins or investing in gold exchange-traded funds (ETF).

Buying gold ETF shares is often preferable to physical gold because it reduces the costs associated with purchasing and holding gold. Gold ETFs have high liquidity compared to physical gold, allowing investors to buy and sell their shares much faster and with a lot less hassle. Furthermore, gold ETFs have a lower barrier of entry, meaning investors with much smaller budgets can still gain exposure to gold by investing in ETFs.

If you are looking to invest in a gold-related asset with high liquidity, no storage costs and lower barriers to entry, gold ETFs are the perfect investment vehicle for you. Generally, there are two types of gold ETFs you can invest in: ones that invest in gold-mining companies and ones that invest in physical gold.

A physical gold ETF allows you to own physical gold without dealing with the additional hassle or cost of storing and insuring the gold bullion, making it ideal for smaller investors. Investing in a mining-focused gold ETF also grants you exposure to the gold market as the stock prices of gold-mining companies tend to rise and fall with gold prices. Additionally, a mining-focused gold ETF can also generate some income as many gold-mining ETFs pay dividends.

Regardless of your choice of gold ETF, such an investment would help buffer your portfolio from inflation as gold is a known hedge against inflation.

You can start by purchasing a few shares of a high-quality gold ETF after shortlisting a few and doing your due diligence. The investment can help your money preserve its value because gold tends to move with the inflation rate, enabling you to preserve purchasing power and reduce losses on the other investment choices in your portfolio amid high inflation levels.

Some investors opt to go for broader exposure to other precious metals, and entities that are focused on extracting several critical metals, such as First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF), could offer such investors possible stocks to add to their portfolios.

NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF

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Lacey@MNW

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