Glittering Gold: New Ways To Play GLD's Breakout

seekingalpha03-10

Lemon_tm Gold launched to fresh all-time highs last week. The 4% advance came as real interest rates dipped further and the US Dollar Index finished near its lowest mark since the middle of January. ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2418811610?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1500507449/image_1500507449.jpg","is_english":true,"pubTime":"2024-03-10 23:29","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2418811610","market":"hk","top_or_hot":-1,"title":"Glittering Gold: New Ways To Play GLD's Breakout","media":"seekingalpha","content":"<div>\n<p>Lemon_tm Gold launched to fresh all-time highs last week. The 4% advance came as real interest rates dipped further and the US Dollar Index finished near its lowest mark since the middle of January. ...</p>\n\n<a href=\"https://seekingalpha.com/article/4677242-glittering-gold-new-ways-to-play-gld-breakout\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Glittering Gold: New Ways To Play GLD's Breakout</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGlittering Gold: New Ways To Play GLD's Breakout\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-10 23:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4677242-glittering-gold-new-ways-to-play-gld-breakout><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Lemon_tm Gold launched to fresh all-time highs last week. The 4% advance came as real interest rates dipped further and the US Dollar Index finished near its lowest mark since the middle of January. ...</p>\n\n<a href=\"https://seekingalpha.com/article/4677242-glittering-gold-new-ways-to-play-gld-breakout\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4532","symbol_name":"文艺复兴科技持仓","start_time":0,"source_url":"https://seekingalpha.com/article/4677242-glittering-gold-new-ways-to-play-gld-breakout","article_id":"2418811610","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1500507449/image_1500507449.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2418811610","pubTimestamp":1710084573,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Lemon_tm Gold launched to fresh all-time highs last week. The 4% advance came as real interest rates dipped further and the US Dollar Index finished near its lowest mark since the middle of January. Furthermore, China has been a net purchaser of gold for a whopping 16 straight weeks - its central bank now holds 72.6 million troy ounces, or about 2,257 tons. At home, the US national debt is rising by $1 trillion about every 100 days. There are no doubt macro tailwinds for the precious metal, but is gold’s thrust telling us something about where the global economy may head in the months ahead?Weren’t gold miners supposed to provide, in effect, leveraged upside returns to gold?That’s what we witnessed in the 2000s and early 2010s, a time when the price of an ounce of gold rallied for an impressive 11 consecutive years ending in 2011. Today’s a diffe","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4532":"文艺复兴科技持仓","BK4570":"地缘局势概念股","LU0075056555.USD":"贝莱德世界矿业基金A2","FDN":"First Trust Dow Jones Internet I","BK4585":"ETF&股票定投概念","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","GDMN":"WisdomTree Efficient Gold Plus Gold Miners Strategy Fund","LU0368265764.SGD":"Blackrock World Gold Fund A2 SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","LU0496367417.USD":"富兰克林黄金和贵金属A（acc）","NEM":"纽曼矿业","LU0330918003.SGD":"Blackrock World Mining A2 SGD-H","GDX":"黄金矿业ETF-VanEck","GOLD.AU":"ETFS Physical Gold","LU0266512127.USD":"摩根大通环球自然资源 A(acc)","BK4588":"碎股","GDX.AU":"VANECK GOLD MINERS ETF","BK4550":"红杉资本持仓","NEM.AU":"Newmont Corp","AEM":"伊格尔矿业","LU0456854461.SGD":"JPMorgan Funds - Global Natural Resources A (acc) SGD","LU0498741890.SGD":"FTIF - Franklin Gold and Precious Metals A (acc) SGD","BK7104":"黄金","LU0498741114.HKD":"FRANKLIN GOLD & PRECIOUS METALS \"A\" (HKD) ACC","SG9999001143.SGD":"United Gold and General A Acc SGD","GOLD":"巴里克黄金","BK7054":"投资银行业与经纪业","LU1023059493.AUD":"Blackrock World Mining A2 AUD-H","GDE":"WisdomTree Efficient Gold Plus Equity Strategy Fund","BK4017":"黄金","LU1223083913.SGD":"Schroder ISF Global Gold A Acc SGD-H","LU0055631609.USD":"贝莱德世界黄金基金A2","LU1223082196.USD":"施罗德环球黄金A Acc"},"translate_title":"金光闪闪：玩GLD突围的新方法","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NEM.AU":1,"NEM":1,"AEM":1,"GOLD.AU":1,"GOLD":1,"GDX.AU":1,"GDE":1,"GDMN":1,"GDX":1,"FDN":0.9},"content_text":"Lemon_tm Gold launched to fresh all-time highs last week. The 4% advance came as real interest rates dipped further and the US Dollar Index finished near its lowest mark since the middle of January. Furthermore, China has been a net purchaser of gold for a whopping 16 straight weeks - its central bank now holds 72.6 million troy ounces, or about 2,257 tons. At home, the US national debt is rising by $1 trillion about every 100 days. There are no doubt macro tailwinds for the precious metal, but is gold’s thrust telling us something about where the global economy may head in the months ahead? That remains a hot topic between the bulls, bears, and most macro strategists. The obvious way to play gold is through the SPDR Gold Shares ETF (NYSEARCA:GLD). I have a buy rating on the ETF. The fund has a 0.4% annual expense ratio and currently sports an A ETF Grade by Seeking Alpha. With high liquidity, but a volatile history, I see more upside ahead.  Later, I will detail why $2600 in spot gold is doable from a technical point of view. Moreover, with still-high inflation and central bank rate cuts in the offing, it could be the ideal macro setup for gold and GLD itself. As macro pundits debate what it all means for the global economy, bullish price action is getting louder.  For investors, a pair of ETFs might fly under the radar, but both are effective strategies to gain exposure to gold following the key technical breakout. Let’s dig into the WisdomTree Efficient Gold Plus Equity Strategy Fund (GDE) and the WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN). GDE, GDMN Have Outperformed GLD, GDX Over the Past Year Stockcharts.com For background, GDE offers investors capital-efficient exposure to large-cap US equities and gold through leveraged futures contracts. It can be used as a substitute for large-cap US equity, multi-asset, or alternative strategies and to enhance portfolio diversification with gold futures as a potential inflation hedge.  GDMN, on the other hand, seeks exposure to gold miners' equities and enhanced gold exposure through leveraged futures contracts and aims to provide an alternative to gold miners strategies with the added potential benefit of exposure to gold futures. Diversification with gold futures and gold miners acting as a potential inflation hedge is seen as helpful for a well-rounded global portfolio. Both funds have outperformed spot gold since the start of Q4 last year, and have sharply beaten the popular, or infamous if you’ve seen its chart over the past few years, VanEck Gold Miners ETF (GDX) over that stretch. Indeed, investors in some of the largest precious metals equities and ETFs have suffered while gold, the commodity, has soared. What gives? Weren’t gold miners supposed to provide, in effect, leveraged upside returns to gold? That’s what we witnessed in the 2000s and early 2010s, a time when the price of an ounce of gold rallied for an impressive 11 consecutive years ending in 2011. Today’s a different environment, though. But new strategies offer investors seeking the most efficient and effective exposure to the yellow metal better alternatives. Gold Rallies as Gold ETP Holdings Dip WisdomTree While crypto catches so much fanfare today, gold remains a stalwart that has endured over millennia. The metal's historical significance, coupled with its diverse appeal, makes it a special investment – even in 2024.  It is a strong diversifier for portfolios due to its distinct behavioral traits, serving as an inflation and geopolitical shock hedge. Gold has exhibited equity-like returns with minimal downside capture over the last 20 years, making it an attractive option for increasing portfolio diversification and reducing risk. Gold's Diversification Benefits WisdomTree Despite recent bullish price action, gold has endured significant investor outflows. It will be fascinating to see if that reverses now that new all-time highs are being made. Ahead of imminent Fed rate cuts and the potential for lower real interest rates, gold’s trek above $2100 could soon put $2600 on the doorstep based on the years-long technical consolidation, illustrated below, that has now been breached. Spot Gold: Bullish Breakout, Technical Target $2600 Based on the $1600 to $2100 Previous Range Stockcharts.com Driving improved gold performance may be the reality that inflation will be higher than what investors were used to during the 2010s. If inflation stays a bit lofty, that could be the perfect recipe for gold and gold miners, akin to the 1946 to 1981 period when gold outperformed bonds in terms of after-inflation returns. Gold Has Beaten US Stocks Since Early 2000 WisdomTree Gold: Positive Real Returns During the 1946-1981 Inflationary Regime   WisdomTree GDE seeks total return by investing, either directly or through a wholly-owned subsidiary, in a portfolio comprised of US-listed gold futures contracts and US large-cap equity securities. Think of this ETF as a combination of large-cap US stocks with a spice of gold.  Its top 10 holdings include many of the familiar domestic mega-caps, but there’s a slightly more than 10% allocation to gold futures. GDE owns the 500 largest US stocks by market cap with $90 invested in equities for every $100 invested. Exposure to gold futures is done using leverage, so there is $180 of total exposure to stocks and gold. GDE: Large-Cap US Access with a Gold Futures Overlay WisdomTree With just a 0.2% annual expense ratio and an A+ Momentum Grade by Seeking Alpha, I assert that GDE an efficient way to own both the domestic stock market and gold in a single vehicle. Returns have been stellar – the ETF is up 40% from a year ago and 23% over the past six months. It has outpaced the S&P 500 by more than three percentage points so far this year. Among the primary benefits to owning GDE today is that not only is it capturing alpha as the SPX rallies, but should volatility strike, the layer of gold futures could help buoy returns versus the broader market. Notice in the chart below that gold, while not immune to selloffs during equity bears, has positive returns in 15 of the 20 worst quarters for the S&P 500. Thus, GDE has the potential to serve as a compelling portfolio diversifier. Gold Has Held Up Well During Market Turmoil WisdomTree Now let’s turn to GDMN, which adds gold futures to a portfolio of gold mining stocks. Consider this ETF as a more focused approach to gold industry exposure, while GDE is effective for a broader stock allocation. Put frankly, GDMN comparable to GDX, but with the added benefit of owning gold futures. GDMN has outpaced GDX over the past 52 weeks, which should not come as a surprise based on what I described earlier – that the commodity has trounced gold miners’ collective equity performance. GDMN, up 22% YoY, Has Outpaced GDX Stockcharts.com GDMN seeks total return by investing in gold miners and gold futures contracts. Its major stock holdings include the familiar names: Barrick Gold (GOLD), Newmont (NEM), and Agnico Eagle Mines (AEM), among other diggers. Unlike GDE, there’s a significant amount of exposure to non-US markets: Canada, Australia, and South Africa are significant geographical holdings. GDMN beat the NYSE ARCA Gold Miners Index last year, and more strength has been seen thus far in 2024. GDMN pays a dividend yield of 1.9%, about 40 basis points above that of the S&P 500 and its 0.45% annual expense ratio is cheaper than that of GDX. The fund employs leverage, too - for every $100, the GDME seeks to invest approximately $90 in the gold miners equity basket and $10 in short-term collateral. To help magnify the potential benefits of the asset allocation, according to WisdomTree, $90 in gold futures are layered on top for $180 of total gold-oriented exposure. The issuer also points out that “gold miners have been a relatively disappointing investment over the last two decades, with high volatility and subpar returns, but the rise in gold prices is improving the outlook for gold miners’ profitability. Gold miners' net profit margins have consistently been rising since 2016, in lockstep with increases in their level of capital expenditures. Importantly, gold miners may also offer attractive dividend yields amid the backdrop of a rising rate environment.” Gold Miners Have Historically Offered Diversification Benefits WisdomTree The Bottom Line Investors have new, better ways to gain exposure to gold. With a new bull market potentially underway following a 4% surge last week, the precious metal might, at long last, be on the uptrend after more than 12 years of choppy price action amid a bull market in US large caps.   GDE and GDMN are two innovative and low-cost ETFs that go beyond basic spot gold funds and precious metals miner funds.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2418811610"}