IAU iShares Gold Trust is My Tactical Bet On the Rising Price of Gold

🌟🌟🌟Gold prices rose above USD 2400 per ounce to an all time high last Friday as investors seek refuge in its safe haven asset.   Investors are now anxiously waiting for Israel's response to the missiles attack by Iran last week.

Wall Street Analysts are bullish on Gold with Goldman Sachs increasing its year end Gold price forecast to USD 2700 per ounce from USD 2300, citing Gold 's bull market' s indifference to the usual macro factors.

I have just invested in $iShares Gold Trust(IAU)$ today.  IAU tracks the Gold Spot Price, using Gold bars held in vaults around the world. 

IAU is an efficient way for investors to hold physical gold.  This ETF removes the complexities for a small investor like me of buying, transporting, storing and insuring physical gold.   IAU is managed by BlackRock, the largest fund manager in the world.  The current Assets Under Management is USD 28.91 billion.   IAU started in January 21 2005.  

IAU tracks the London Bullion Market Association (LBMA) PM Gold Price Index.  Therefore it has a close relationship with spot prices of Gold. Its structure as  Grantor Trust protects investors as Trustees cannot lend the gold bars.  

The expense ratio is 0.25% which is much lower than $SPDR Gold Shares(GLD)$ which has an expense ratio of 0.40%.

At the last closing price of USD 45.13, IAU ETzf is easier on my pockets than GLD which is USD 220.95.

Performance wise IAU is up 1.87% and in the past 5 days it has risen by 1.42%.  IAU has jumped 15.9% year todate and in 2023, IAU is up by 19.2%.

Wall Street Analysts are bullish on $iShares Gold Trust(IAU)$ with a Buy rating, Target price of USD 48.03, an upside potential of 6%.

$iShares Gold Trust(IAU)$ is my Tactical Bet on the rising price of Gold and a hedge against high inflation. 

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