To The Moon

🌟🌟🌟Gold price touched a record high of USD 2685.42 per ounce on September 26.  This fresh surge in the price of Gold has been driven mainly by the 50 basis points cut in interest rates by the Feds and expectations of more cuts by the US Central Bank.

Another factor is the geo political tensions arising from the Israel and Hezbollah conflict and the ongoing Russia Ukraine war.  In addition to that, central banks around the world have been buying gold. 

With Gold prices expected to increase further, I have invested in 2 ETFs.  The first ETF is $iShares Gold Trust(IAU)$  which tracks the Gold Spot price, using gold bars held in vaults around the world.  IAU is an efficient way for a small investor like me to hold physical Gold.  I do not have to worry about buying physical gold, transporting it, storing and insuring physical gold.  I also do not to worry about theft too.

IAU is the 2nd largest ETF after $SPDR Gold Shares(GLD)$  with Assets Under Management of USD 31.30 billion.  IAU also has a lower expense ratio of 0.25% compared to GLD's 0.40%.

Performance wise, IAU is up 27% year todate and in 2023, IAU has risen by 43%.

The only thing about IAU is that it does not pay dividends.  So my 2nd ETF $iShares MSCI Global Gold Miners ETF(RING)$ which represents the world's largest and best gold miners do.   

The Top 10 holdings of RING ETF are Newmont, Agnico Eagle Mines, Barrick Gold, Wheaton Precious Metals, Kinross Gold, Zijin Mining, Gold Fields, Anglo Gold Inc, Alamos Gold and Harmony Gold Mining.

The Top 10 holdings weightage is 72%.  Total number of holdings is 37.  North America which includes Canada and the US take up 75% of the holdings with Europe at 14% and Asia Pacific region at 10%.

The expense ratio is 0.39%, one of the lowest compared to similar competing ETFs.  Dividends are paid every 6 months.  The current dividend yield is 1.45%.  RING ETF goes ex dividend on December 17 2024.

RING has been awarded a Gold Medal by Morningstar which means that it is an excellent ETF.  I also like that the Fund Manager is BlackRock under its iShares brand. 

Performance wise RING is up 36% year todate and has recently hit its 52 week high at USD 34.94.    In 2023, RING has skyrocketed 65%!

I have invested in RING ETF since  2022 and I am currently up 29%.  I have only started  investing in IAU in January this year and I am up 7%.

With both ETFs - RING and IAU, I have the best of both worlds - Gold and Gold Miners.  These are my 2 tactical bets on Gold as I feel it is important to have a diversified portfolio. 

 With further rate cuts in the pipeline, I believe that both ETFs have lots of upside potential ahead.  Gold has long been regarded as a safe haven asset especially when there are geopolitical tensions apart from being a precious commodity, highly priced since ancient times. 

There are so many ways to get into Gold.  I have chosen $iShares Gold Trust(IAU)$  and $iShares MSCI Global Gold Miners ETF(RING)$ to be my 2 ETFs to invest in Gold. 

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