Gold Investors Should Own These ETFs, Says Bank Of America: Why Analysts Expect Gold Spike To $2,600
Portfolio Pulse from Piero Cingari
Bank of America projects gold prices to rise to $2,500-$2,600 per ounce, advocating for physical gold ETFs like iShares Gold Trust Micro (IAUM) and SPDR Gold Minishares Trust (GLDM) over miners for equity investors. The report highlights gold's hedging quality and central bank purchases as key drivers of its rally, noting a potential demand increase from retail investors. For mining exposure, Barrick Gold Corp. (GOLD) and Newmont Corp. (NEM) are recommended, with a preference for iShares MSCI Global Gold Miners ETF (RING) and VanEck Gold Miners ETF (GDX) over other mining ETFs.
March 21, 2024 | 7:31 pm
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POSITIVE IMPACT
VanEck Gold Miners ETF is recommended for its exposure to buy-rated gold mining stocks and potential for above-average returns.
GDX's recommendation is based on its potential for above-average risk-adjusted returns and exposure to buy-rated stocks, benefiting from the positive gold market outlook.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 75
POSITIVE IMPACT
GLDM is favored by Bank of America for investors seeking direct exposure to gold's value, expected to rise significantly.
GLDM's recommendation is based on its cost-effectiveness and direct exposure to gold, which is anticipated to experience a significant price increase.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Barrick Gold Corp. is recommended for its favorable risk-reward profile amidst gold's positive price trajectory.
GOLD is recommended due to its higher upside to downside beta ratio, making it an attractive option for capitalizing on the expected rise in gold prices.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
IAUM is recommended by Bank of America as a cost-effective way to gain exposure to rising gold prices.
IAUM is highlighted as a preferred physical gold ETF due to its lower cost, directly benefiting from the projected increase in gold prices.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Newmont Corp. is highlighted by Bank of America as a mining stock with a strong risk-reward balance in the gold market.
NEM's recommendation stems from its favorable risk-reward profile, aligning with the positive outlook on gold prices.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
iShares MSCI Global Gold Miners ETF is preferred by Bank of America for its risk-adjusted returns and exposure to buy-rated stocks.
RING's preference is due to its above-average risk-adjusted returns and exposure to buy-rated mining stocks, aligning with the bullish outlook on gold.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 75