The pros and cons of investing in gold

Gold is at a six-year high as investors regain their desire for safe havens, but without dividends can the precious metal be seen as a proper investment?

Morningstar 3 July, 2019 | 3:31AM

Golden eggs

Gold has had a strong run in 2019 and recently hit a six-year high as factors including a weaker dollar, US-Iran tension, global growth fears and a U-turn from the world’s central banks have all worked in the precious metal’s favour.

The price of bullion jumped above US$1,300 per ounce in January and this week broke through US$1,400, a level last seen in 2013. The recent surge in the gold price has boosted the returns of gold-focused funds and ETFs, which have largely underperformed the wider stock market in recent years.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
iShares Gold Bullion ETF (CAD-Hedged)13.65 CAD0.29

About Author

Morningstar

Morningstar  Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 17 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets.