Gold prices<\/a> notched another fresh record<\/a> this week\u00a0as more investors piled into the metal amid economic uncertainty and rising bets for a Federal Reserve<\/a> rate cut.<\/p>\n So far this year,\u00a0bullion has gained about 35% as of Friday’s close. Spot gold<\/a>\u00a0is now near $3,600 an ounce.<\/p>\n “Without a doubt, gold has been trending higher, and it’s getting a lot of attention from investors,” said Blair duQuesnay, a chartered financial analyst and certified financial planner, who is also an investment advisor at\u00a0Ritholtz Wealth Management<\/a>.<\/p>\n<\/div>\n Investors regard gold as protective against “bad economic times,” according to research <\/a>by the Federal Reserve Bank of Chicago. As a safe-haven investment, gold tends to perform well in low-interest-rate environments and during periods of political and financial uncertainty<\/a>.\u00a0<\/p>\n “Gold checks all of those boxes,” said Sameer Samana, head of global equities and real assets at the Wells Fargo Investment Institute.<\/p>\n<\/div>\n Here’s a look at other stories offering insight on ETFs for investors.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n According to Wells\u00a0Fargo\u00a0Investment\u00a0Institute’s latest\u00a0investment\u00a0strategy report<\/a>, its analysts “expect ongoing gold purchases by global central banks and heightened geopolitical strife to support demand growth for precious metals.”<\/p>\n<\/div>\n To invest in the precious metal, investors can either buy physical gold or gold-related financial investments.\u00a0<\/p>\n Most experts recommend getting\u00a0investment exposure to gold<\/a>\u00a0through an exchange-traded fund that tracks the price of physical gold, as part of a well-diversified portfolio, rather than buying actual gold coins or bars.<\/p>\n “In times of acute stress, gold stocks underperform, so to the extent that people want exposure, a gold bullion-backed ETF does a better job than gold-related equities and gold miner stocks,” said Samana.<\/p>\n SPDR Gold Shares (GLD<\/a>) and iShares Gold Trust (IAU<\/a>) are the two largest gold ETFs, according to\u00a0ETF.com.<\/p>\n “Gold ETFS are going to be the most liquid, tax efficient and low-cost way to invest in gold,” duQuesnay said.<\/p>\n “It’s much more inefficient to own physical gold,” according to duQuesnay, largely due to higher transaction costs and storage considerations of bullion, including bars and coins.<\/p>\n Alternatively, gold mining stocks are not as closely linked to the underlying price of gold and are more tied to business fundamentals, she added.<\/p>\n<\/div>\n Despite gold’s record run, financial advisors\u00a0generally recommend limiting<\/a>\u00a0gold exposure to less than 3% of one’s overall portfolio.\u00a0<\/p>\n CNBC Financial Advisor Council<\/a> member duQuesnay said she has no gold in the portfolios she manages for her clients, in part because of the temperamental nature of any trendy investment.<\/p>\n “Are we in the third inning of this rally of the ninth inning? Gold is priced as a commodity, and that can make it hard to pinpoint the fundamentals,” she said.<\/p>\n Subscribe to CNBC on YouTube.<\/strong><\/em><\/a><\/p>\n<\/div>\n<\/div>\n\nMore from ETF Strategist:<\/h2>\n
The ‘tax efficient and low-cost way’ to invest in gold<\/h2>\n
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