Monday, January 25, 2016

How to invest in Gold

Owning Gold physical vs ETF

Some actual gold in the form of easily saleable coins is, of course, sensible. Then, it seems to me that ETFs make the best investment position given the liquidity.

Given that gold in euro- and yen-funded terms has very seriously outperformed gold in U.S. dollar terms, I would continue to advocate owning gold funded in those currencies, which are likely to devalue relative to the dollar and are thus most likely to devalue relative to gold.

Of the total gold ETF position one might wish to have, 40% should be in euro-funded gold; 40% should be in yen-funded gold; and the remainder should be in dollar-funded gold; so AdvisorShares Gartman Gold/Euro (ARCA:GEUR), AdvisorShares Gartman Gold/Yen (ARCA:GYEN) and SPDR Gold Shares (ARCA:GLD) are the preferred positions.

I have a direct interest in GEUR and GYEN, but I also have my largest position in my personal retirement fund in both.

via IBD