Gold

Gold: A Bloomberg article highlights how investors are piling into gold ETFs at the fastest rate in more than a year.

The safe-haven asset is up 6% this year, against the 6% decline in the S&P500.

Gold ETFs mentioned:
- SPDR Gold Shares (GLD) – favoured by liquidity-loving institutions. It trades more than 500m shares a day, but has higher fees of 0.4%. Stores gold in London
- iShares Gold Trust (IAU) – favoured by advisers and buy-and-hold retail investors, charges cheaper fees of 0.25%. Gold is stored in London, New York and Toronto
- Physical Swiss Gold Shares (SGOL) – favoured by those who want gold stored in Switzerland. Charges 0.4% fees.

While the current tactical preference for gold is understandable, Bloomberg’s Editor-in-Chief Emeritus Matt Winkler argues there is little fundamental reason to own gold. He cites the lack of inflation (gold is often used as an inflation hedge), demand for financial assets remains as strong as ever, and the underlying strength of the US economy as reasons for his view.