3 ways to invest in metal to take advantage of the rise

Gold prices exceeded US $ 3,000 this Friday The ounce For the first time in history driven by a wave of purchases of central banks, world economic fragility and attempts at President Donald Trump to rewrite the rules of global trade imposing tariffs on allies and strategic rivals.

Metal touched US $ 3.001.20 The ounce on Friday, and then contribute to 2,999.30 0.30% more than the previous day.

The movement reinforces the centenary role of gold as a reserve of value in turbulent times and as Fear indicator in markets. In the last quarter of the century, the price multiplied by ten, even exceeding S&P 500, the reference index of US actions, which quadrupled during the same period, Bloomberg said.

While the operators prepared for tariffs, gold prices in the United States rose above other international reference assets, which led marketers to hurry to bring large volumes of the metal to the US before the taxes came into force.

More than 23 million ounces of gold for US $ 70,000 million entered the deposits of the New York Comex Bag between Elections Day and March 12. The influx has been so great that it contributed to the US trade deficit reaching a record in January.

Gold price increases usually reflect economic and political tensions broader. For example, the metal exceeded the brand of US $ 1,000 per ounce after the financial crisis of 2008 and US $ 2,000 during the Covid pandemic.

The prices fell to the US $ 1,600 after the pandemic, but they rose again in 2023, driven by the central banks, which bought ingots to diversify their investments, in fear that the currency would make them vulnerable to US punitive measures.

In early 2024, the market rose again, driven by purchases in China, where concern for the country’s economy grew. The rebound gained greater impulse after US elections, as the markets assimilated the aggressive commercial policy of the new government.

“Gold is an asset capable of preserving its value in the face of the largest variety of macroeconomic dislocations that we have seen,” said Thomas Kertsos, Portfolio Cogester of First Eagle Investment Management, to Bloomberg. “Over the centuries, gold has achieved, despite volatility, always maintain its average value and purchasing power, while providing significant liquidity.”

The recent gold rebound has occurred despite what would normally be winds against: higher interest rates and a strong dollar. When bonds or cash in the bank offer solid performance, gold, which does not generate interest, is less attractive. The dollar is the main currency in which the metal is purchased and sold. When it becomes more expensive for holders of other currencies, that usually generates sales pressure.

But this time, those same forces have brought new buyers to the market. As the Yuan sank against the dollar, Chinese investors accumulated. Persistently high inflation throughout the world has also increased the attractiveness of gold as a value reserve. And then there are the fears of investors to lose the latest gold gains.

According to Maximiliano Donzellimanager of investment strategies in IOLthe new gold record – which rose 60% in two years – leads to wonder the current value is a ceiling or if it is a rally that still has Touring ahead.

“It is still early to determine the real impact of Trump’s tariffs on the economy and markets. With an environment of high uncertainty and fears that could persist in the coming months, investors are recommended to adopt a more prudent approach and manage risk through various strategies, being geographical diversification and assets one of the most important,” says the analyst.

And he adds that a large part of the prospects forward in world markets will depend on the trajectory of monetary policy, and that central banks return to resume cuts in interest rates.

For what they want to invest in gold from Argentina, Donzelli details three alternatives:

The easiest and most direct way to invest in gold, he maintains, is through the ETF GLD, which is the largest gold quoted fund in the world, with more than US $ 50,000 million administered assets.

The background has as underlying active gold bullion stored in vaults, and not future gold.

Another alternative to position yourself in gold, although it is more indirect, in investing in mining companies. Among the outstanding ones are Barrick Gold (Gold) and Harmony Gold Mining Company (Hmy). The two can operate in the local market through the respective yield.

IOL offers an option of the simple portfolio “bathed in gold”, which is composed of Barrick Gold, Harmony Gold, and also Pan American Silver, which usually has a good correlation with what happens both with gold and silver.

Finally, for those interested in investing, but through crypto, there is also the option to invest in Gold Paxos (PAXG). It is a Token digital that represents an ounce of real gold.

Every $ PaxG is backed by physical gold stored in vaults, which allows you to invest in this precious and safe way. In turn, it is an asset that is regulated by the Department of Financial Services of the State of New York (NYDFS), which gives you greater security, says Donzelli.

Among its advantages is that it is easy to buy and sell; It is divisible (it is not necessary to buy a complete ounce), and Gold Gold reserves are audited monthly to verify that they coincide with the supply of tokens.