abrdn Physical Gold Shares ETF (ARCA: SGOL)

Dernières nouvelles pour abrdn Physical Gold Shares ETF (ARCA:SGOL)

abrdn Physical Gold Shares ETF

The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in gold. An investment in physical gold requires expensive and sometimes complicated arrangements in connection with the assay, transportation, warehousing and insurance of the metal. Although the Shares are not the exact equivalent of an investment in gold, they provide investors with an alternative that allows a level of participation in the gold market through the securities market.

Aberdeen Standard Physical Gold Shares ETF

As gold teases all-time highs, peaking at <a href="https://www.benzinga.com/markets/guidance/25/06/45928561/gold-biggest-boom-in-decades-and-investors-are-still-missing-out">$3,446 an ounce on Friday</a> and logging its best half-year rise in more than 40 year, investors are scrambling into ETFs to join the party. Yet as several gold ETFs have tracked the metal&#8217;s rocket-like run, a more fundamental question is rising to the surface: Are these ETFs designed for the type of crisis driving gold&#8217;s rise?
That is, can your gold ETF really save you when it counts?
<h2 class="wp-block-heading">When Safe-Haven Investing Gets Technical</h2>
Gold&#8217;s rally this year has been fueled by a powerful combination of Middle East tensions, U.S. fiscal instability, and weakening dollar. But in the midst of all the macro upheaval, investors in ETFs might be overlooking an important nuance: the structural strength of their gold holdings.
On the surface, highly traded ETFs such as the SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>), abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>), and SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>) appear to be identical. They all aim to track the price of gold, have low expense ratios, and are traded with lots of liquidity. However, beneath the surface, the distinctions might prove fatal in an actual crisis situation.
Consider storage, for instance. GLD holds much of its gold in the <a href="https://www.spdrgoldshares.com/media/GLD/file/GLD-8K-Nov30-2022.pdf?">vaults </a>of HSBC in London, subject to UK law. SGOL <a href="https://www.onegold.com/etfs/sgol?">holds </a>its bullion in Zurich and London, and IAU has <a href="https://www.ishares.com/us/literature/prospectus/p-ishares-gold-trust-prospectus-12-31.pdf?">vaults </a>in New York, Toronto, and London. During times of peace, this is a small asterisk. During wartime, or during sanctions, sovereign freezes, or bank disruptions, geography of the vault can be the weak spot or secret advantage of an ETF.
Also, not all ETFs have the same redemption rights. GLD permits large institutions to trade shares for real bullion, but individual investors can&#8217;t. SGOL has more transparency in auditing and bar listings, and while GLDM is less expensive, it&#8217;s less accommodating in redemption and verification.
<h2 class="wp-block-heading">Liquidity Vs. Ownership</h2>
And then there&#8217;s the derivative problem. Certain &#8220;gold&#8221; ETFs don&#8217;t own any physical gold at all, opting for futures or swap contracts instead, subjecting investors to counterparty risk, particularly in times of market stress. Invesco DB Precious Metals Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBP#NYSE">DBP</a>) and ProShares Ultra Gold (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UGL#NYSE">UGL</a>) are examples of such speculative funds, constructed more for short-term tactical use than long-term crisis protection.
To investors leveraging gold as a hedge against monetary breakdown, this makes all the difference. A futures-backed gold ETF can track price beautifully, until liquidity evaporates or the roll cost is unsustainable.
Global central banks are voting with their vaults. They've bought over 1,000 tonnes of gold in the last year, according to the World Gold Council, cited in a Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-06-03/gold-market-s-record-breaking-rally-powered-by-central-bank-buying?sref=TBDibEcD">report</a>, and now hold bullion equivalent to 18% of outstanding U.S. public debt—up from 13% a decade ago.
That&#8217;s had a long shadow over Treasuries and the dollar, and might drive more institutional money into physical gold exposure. If it does, ETFs that stockpile actual bullion, not promises to deliver bullion, might be the next best thing.
<h2 class="wp-block-heading">Know Your Gold</h2>
As gold charges toward $3,500, and possibly even $4,000 by mid-2026, according to Goldman <a href="https://www.cnbctv18.com/market/commodities/gold-prices-today-down-two-factors-may-hold-it-up-19605598.htm">projections</a>, ETF investors need to peer past the shiny charts.
Price is only part of the equation. In a time of geopolitical uncertainty, structural transparency, redemption rights, and vault geography may be what distinguishes gold ETFs that glitter from those that merely shine.
<figure class="wp-block-table"> 
<table class="has-fixed-layout">
<thead>
<tr>
<th>ETF</th>
<th>Structure</th>
<th>Storage Location</th>
<th>Redeemable for Gold?</th>
<th>Expense Ratio</th>
</tr>
<tr>
<th>GLD</th>
<th>Physical</th>
<th>HSBC vault, London (U.K.); New York (U.S.A.); Zurich (Switzerland)</th>
<th>Yes (institutions only)</th>
<th>0.40%</th>
</tr>
<tr>
<th>IAU</th>
<th>Physical</th>
<th>New York (U.S.A.), Toronto (Canada), Zurich (Switzerland) vaults</th>
<th>Yes (institutions)</th>
<th>0.25%</th>
</tr>
<tr>
<th>SGOL</th>
<th>Physical</th>
<th>Zurich (Switzerland), London (U.K.)</th>
<th>Yes</th>
<th>0.17%</th>
</tr>
<tr>
<th>GLDM</th>
<th>Physical</th>
<th>London (U.K.) —smaller bars</th>
<th>Limited</th>
<th>0.10%</th>
</tr>
<tr>
<th>UGL</th>
<th>Derivatives</th>
<th>N/A (futures-based)</th>
<th>No</th>
<th>0.95%</th>
</tr>
</thead>
</table>
<figcaption class="wp-element-caption">Key Gold-Backed ETFs – At a Glance </figcaption></figure>

Specialty ETFs

Commodities

ETFs

GLDM

SGOL

Are Gold ETFs Really A Hedge During A Geopolitical Crisis? Here's What To Check Before Investing

The euro has lost its position as the second-largest reserve asset globally, with gold taking its place, the European Central Bank (ECB) stated in its 2025 annual review.
The top European financial institution took notice of a surge in central bank purchases and record-breaking prices of <a target="_blank" href="https://www.benzinga.com/topic/gold" rel="noreferrer noopener">the yellow metal</a>. At 20% of reserves, gold is slowly closing the gap on the U.S. dollar, which leads at 46%.
"Adjusted for inflation, real gold prices in 2024 surpassed their previous peak seen during the 1979 oil crisis. Meanwhile, gold reserves held by central banks stand at levels close to those last seen in the Bretton Woods era (36,000 tons), although they now account for a far smaller share of total gold supply," the ECB said in the <a target="_blank" href="https://www.ecb.europa.eu/press/other-publications/ire/focus/html/ecb.irebox202506_01~f93400a4aa.en.html" rel="noreferrer noopener">review</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com//node/45893521" rel="noreferrer noopener">US Embassy Evacuations Spark Middle East Risks, And Markets Are Noticing</a>
The bank has stated the persistent rally into 2025, which has (for now) topped at $3,500 per ounce, driven by a mix of investor interest and persistent official sector demand.
The geopolitical shock of Russia's invasion of Ukraine in 2022 triggered a reassessment of reserve strategies among central banks. Concerns over sanctions and the weaponization of reserve currencies drove a shift toward gold, which has long been viewed as a neutral store of value.
This trend was notable among countries geopolitically aligned with or near China and Russia, many of which began increasing their gold holdings in late 2021.
In response, gold demand from the official sector surged to historic highs. Central banks added over <a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/25/02/43512109/gold-extends-records-as-central-banks-rush-to-buy-bullion-miners-eye-sixth-straight-winning-week" rel="noreferrer noopener">1,000 tons of gold</a> in each of the past three years—more than double the pace seen during the 2010s.
In 2024 alone, official sector purchases represented over 20% of global gold demand, effectively doubling the average share of 10% in the previous decade.
According to recent data from the World Gold Council, Türkiye, India, China, and Poland were the <a target="_blank" href="https://www.gold.org/goldhub/gold-focus/2025/05/indias-gold-market-update-gains-hold-despite-demand-pressure" rel="noreferrer noopener">largest gold buyers</a>, collectively adding over 600 tons since the end of 2021. Interestingly, while India recently became the fourth-largest global economy, Poland is its European counterpart and the only regional outperformer in 2024,<a target="_blank" href="https://think.ing.com/snaps/poland-cee-peers-2024/" rel="noreferrer noopener"> ING research</a> showed.
Boosted gold reserves could help these economies to <a target="_blank" href="https://www.benzinga.com/markets/commodities/25/05/45617358/gold-demand-holds-firm-as-dollar-confidence-wavers" rel="noreferrer noopener">safeguard against de-dollarization</a>, and hedge against inflation and political instability.
Despite gold's impressive climb, its dominance is still constrained by supply limitations and competition from other reserve assets. Notably, the global gold supply is expected to grow by just<a target="_blank" href="https://www.benzinga.com/markets/commodities/25/06/45828108/global-gold-supply-to-grow-1-in-2025-report-shows" rel="noreferrer noopener"> 1% in 2025</a>, while the U.S. dollar money supply (M2) has grown by<a target="_blank" href="https://ycharts.com/indicators/us_m2_money_supply_yoy" rel="noreferrer noopener"> 4.44%</a> in the last 12 months.
Price Watch: SPDR Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) is up 25.6% year-to-date.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/commodities/25/06/45891893/is-the-us-secretly-hoarding-gold-expert-says-do-it-first-tell-the-world-after" target="_blank" rel="noreferrer noopener">Is The U.S. Secretly Hoarding Gold? Expert Says ‘Do It First, Tell the World After'</a></li>
</ul>
Photo by FOTOGRIN via Shutterstock

Macro Economic Events

News

Economics

Markets

CurrencyShares British Pound Sterling Trust

OUNZ

PowerShares DB US Dollar Index Bearish Fund

USDU

PowerShares DB US Dollar Index Bullish Fund

Gold Surpasses Euro To Become Second-Largest Reserve Asset, Still Far Behind Dollar, ECB Says

The Mining Association of Canada (MAC) released a comprehensive report evaluating the sector's role in the <a target="_blank" href="https://www.benzinga.com/topic/canada" rel="noreferrer noopener">country's economy</a> and providing an outlook.
The <a target="_blank" href="https://mining.ca/wp-content/uploads/dlm_uploads/2025/05/MAC-Report_2025-final-1.pdf" rel="noreferrer noopener">report</a>, titled The Mining Story—Canadian Mining Industry Facts and Figures, sets the total value of mineral production at C$71.9 billion ($52 billion). The total GDP contribution was C$117 billion ($84.7 billion), around 4% of the national GDP.
"These numbers show the wealth that could come to Canada if we develop our mineral endowment," said MAC CEO Pierre Gratton. When mining, quarrying and oil and gas extraction are included, the share of GDP rises to 5.1%.
Employment figures remained strong, with 430,000 direct jobs and 281,000 indirect ones, demonstrating the sector's high-quality employment footprint. However, Gratton cautioned against complacency. "Geopolitical challenges, national security concerns, the transition to a low-carbon economy and the basic need to build and sustain a strong economy in the face of tariffs will require far more mined materials than we currently produce," he said.
Gold and copper stood out as key minerals. Gold surpassed passenger vehicles as Canada's second-largest export, reaching a value of C$30.2 billion ($21.87 billion) and representing 4.6% of all merchandise exports. Its role as a safe haven asset during times of uncertainty boosted demand and helped Canada become a leading exporter.
Copper, whose cornerstone role in green energy technologies has been increasing, brought in C$38.9 billion ($28.17 billion). Production, which amounted to around 508,000 tons, is still historically low compared to highs from 2016, when production exceeded 650,000 tons.
Gratton clarified that Canada must improve investment conditions and streamline regulatory frameworks to accelerate mine development.
"To supply the resources that are needed, Canada must foster a more efficient investment and regulatory environment," he said, calling for better federal-provincial coordination, faster permitting, and enhanced Indigenous consultation to ensure mining projects are developed in a timely but responsible manner.
This push for regulatory efficiency has gained momentum in Ontario, where Premier Doug Ford's government introduced Bill 5, the Protect Ontario by Unleashing our Economy Act. Framed as a tool to cut through what Ford describes as "a maze of bureaucracy," the bill would enable the province to fast-track mining approvals by establishing special economic zones exempt from certain environmental regulations.
The Ford government argues that these reforms are critical to unlocking mineral wealth in areas like the Ring of Fire and improving Ontario's global competitiveness in mine development timelines. Critics, however, say the legislation reduces oversight too far.
"They're just using this as a pretext for doing what they wanted to do already and hoping that people won't notice that the two are not really connected," Jamie Kneen, co-founder of MiningWatch Canada, said, <a target="_blank" href="https://www.cbc.ca/news/canada/toronto/ontario-mining-bill-5-legislation-faster-approvals-1.7539045" rel="noreferrer noopener">per</a> CBC.
Despite claims that the bill will shorten approval timelines from four years to two, Keen said that economic factors—not just regulation—are often responsible for delays in mine development. He pointed out Generation Mining's (OTCQB:<a class="ticker" href="https://www.benzinga.com/stock/GENMF#OTCQB">GENMF</a>) Marathon copper-palladium project, which paused for six years due to low prices. The mine was approved in 2022 but has yet to begin construction.
Read Next:&nbsp;
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/rumors/25/05/45562268/dundee-precious-metals-eyes-adriatic-metals-for-935-million-no-formal-offer-yet" target="_blank" rel="noreferrer noopener">Dundee Precious Metals Eyes Adriatic Metals For $935 Million, No Formal Offer Yet</a></li>
</ul>
Photo by TimBrew via Shutterstock

Government

Regulations

Guidance

COPX

CPER

GENMF

Gold, Copper Drive Canadian Mining As Industry Pushes For Reforms

Gold prices have been scaling fresh highs amid the global market uncertainty, however, some experts point out that a severe correction could be looming amid this gold bull run.
What Happened: While the Gold Spot U.S. Dollar has scaled a fresh high at $3,357.81 per ounce and trades above the 3,300-mark, experts have now started cautioning against this bull run.
According to Patrick Karim, the co-founder of NorthstarBadcharts.com, gold undergoes corrections even during bull markets.
The data shared by him shows that gold prices underwent a correction of over 48% during December 1974 to August 1976, 33% during March 2008 to October 2008, and 22% between August 2020 to September 2022.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I know, gold bulls don&#39;t want to read this right now&#8230; But even during bull markets, gold had these corrections: Dec 1974 to Aug 1976, drop over 48%. Mar 2008 to Oct 2008, drop over 33%. Aug 2020 to Sep 2022, drop over 22%. Same setup now with price historically stretched. <a href="https://t.co/FgRd6uJh6D">pic.twitter.com/FgRd6uJh6D</a>
&mdash; Patrick Karim (@badcharts1) <a href="https://twitter.com/badcharts1/status/1912633618435887502?ref_src=twsrc%5Etfw">April 16, 2025</a></blockquote>
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</figure>
Meanwhile, the CEO of Cardone Capital, Grant Cardone said, &#8220;gold acting like we in depression. Rates will drop like rock.&#8221;
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">gold acting like we in depression. Rates will drop like rock &#x2b07;&#xFE0F; <a href="https://t.co/zy09KAdhYd">pic.twitter.com/zy09KAdhYd</a>
&mdash; Grant Cardone (@GrantCardone) <a href="https://twitter.com/GrantCardone/status/1912618410497782149?ref_src=twsrc%5Etfw">April 16, 2025</a></blockquote>
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</figure>
According to data shared by Charlie Bilello of Creative Planning, the inflation-adjusted gold prices were back at an all-time high, after 45 years, surpassing the prior peak from 1980.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">It took 45 years to get there, but inflation-adjusted Gold prices are back at an all-time high, surpassing the prior peak from 1980. <a href="https://twitter.com/search?q=%24GOLD&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$GOLD</a><a href="https://t.co/l5IYmkeySJ">https://t.co/l5IYmkeySJ</a> <a href="https://t.co/bXWisvrl3c">pic.twitter.com/bXWisvrl3c</a>
&mdash; Charlie Bilello (@charliebilello) <a href="https://twitter.com/charliebilello/status/1912558536573268362?ref_src=twsrc%5Etfw">April 16, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Economist Mohamed El-Erian said that the rise in gold prices was a result of the slow and steady diversification away from the dollar by some foreign central banks and others.
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<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The price of gold registered another record high today, overcoming yet another periodic round of profit-taking by some tactical traders — this as it benefits from the tailwind of slow and steady diversification away from the dollar by some foreign central banks and others.<a href="https://twitter.com/hashtag/gold?src=hash&amp;ref_src=twsrc%5Etfw">#gold</a>… <a href="https://t.co/MKDnxZddv0">pic.twitter.com/MKDnxZddv0</a>
&mdash; Mohamed A. El-Erian (@elerianm) <a href="https://twitter.com/elerianm/status/1912523089557987357?ref_src=twsrc%5Etfw">April 16, 2025</a></blockquote>
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</figure>
This was also confirmed by a study titled ‘Dollar Upheaval: This Time is Different&#8217;. The note written by five experts concluded that investors "(i) question the safety of the dollar, not just Treasuries, and (ii) that they perceive these changes to be long-lasting."
"Normally, in times of global volatility… the dollar appreciates as dollar-denominated assets benefit from a flight to safety. Not this time around," the note stated.
Thus, it is evident that investors were preferring gold as a safe-haven asset over the U.S. Treasuries of the U.S. dollar.
See Also: <a href="https://www.benzinga.com/25/04/44834505/scott-bessent-affirms-china-wont-weaponize-us-treasuries-as-it-would-weaken-their-currency-affecting-exports-we-do-buybacks">Scott Bessent Says China Won&#8217;t &#8216;Weaponize&#8217; US Treasuries, Citing Risk To RMB And Exports: &#8216;We Do Buybacks&#8217;</a>
Why It Matters: The Gold Spot US Dollar price has rallied 27% from $2,623.81 on Dec. 31, 2024, to $3,332.16 per ounce as of today. 
When compared with data from over 25 years, gold prices have skyrocketed 1056% from $288.25 on Dec. 31, 1999. In comparison, the S&amp;P 500 index has risen by 259.1% from 1,469.25 on Dec. 31, 1999, to 5,275.70 as of Wednesday&#8217;s close.
Gold prices were on pace to score their best year since 1979, when the prices rallied 126.5% on a year-to-date basis.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Gold hit another all-time high today and is now up over 27% in 2025. On pace for its best year since 1979.<a href="https://t.co/l5IYmkeySJ">https://t.co/l5IYmkeySJ</a> <a href="https://t.co/qrnwssFL0X">pic.twitter.com/qrnwssFL0X</a>
&mdash; Charlie Bilello (@charliebilello) <a href="https://twitter.com/charliebilello/status/1912676841199935975?ref_src=twsrc%5Etfw">April 17, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Price Action: The gold price was down 0.54% at $3,332.16 as of the publication of this article. Following Gold ETFs have also done well during this bull run.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Gold ETFs</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>Franklin Responsibly Sourced Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FGDL#NYSE">FGDL</a>)</td>
<td>25.78%</td>
<td>40.86%</td>
</tr>
<tr>
<td>Goldman Sachs Physical Gold ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/AAAU#BATS">AAAU</a>)</td>
<td>25.37%</td>
<td>40.32%</td>
</tr>
<tr>
<td>GraniteShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAR#NYSE">BAR</a>)</td>
<td>25.42%</td>
<td>40.40%</td>
</tr>
<tr>
<td>VanEck Merk Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OUNZ#NYSE">OUNZ</a>)</td>
<td>25.24%</td>
<td>40.15%</td>
</tr>
<tr>
<td>SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)</td>
<td>25.28%</td>
<td>40.02%</td>
</tr>
<tr>
<td>iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>)</td>
<td>25.38%</td>
<td>40.28%</td>
</tr>
<tr>
<td>SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>)</td>
<td>25.41%</td>
<td>40.45%</td>
</tr>
<tr>
<td>abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>)</td>
<td>25.32%</td>
<td>40.30%</td>
</tr>
<tr>
<td>iShares Gold Trust Micro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAUM#NYSE">IAUM</a>)</td>
<td>25.49%</td>
<td>40.60%</td>
</tr>
<tr>
<td>Invesco DB Precious Metals Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBP#NYSE">DBP</a>)</td>
<td>21.48%</td>
<td>29.06%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell on Wednesday. The SPY was down 2.22% to $525.66, while the QQQ declined 3.02% to $444.18, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
On Thursday, the Dow Jones futures were up 1.04%, whereas the S&amp;P 500 index rose 1.19% and the Nasdaq 100 advanced 1.21%.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/04/44836076/gold-fund-inflows-smash-record-with-80-billion-in-2025-these-etfs-are-riding-the-3300-surge">Gold Fund Inflows Smash Record With $80 Billion In 2025 — These ETFs Are Riding The $3,300 Surge</a></li>
</ul>
Photo courtesy: Shutterstock

Equities

Treasuries

AAAU

FGDL

IAUM

Gold Nears $3,400 Mark, Experts Point To Likely 'Correction' Amid Bull Market: 'Rates Will Drop Like Rock'

Amid the staggering rally in the Gold prices, the gold fund net inflows have hit a record of $80 billion year-to-date, doubling over its previous record high in 2020, according to the BofA Global Investment Strategy report.
What Happened: A BofA Research graph shared by the Kobeissi Letter on X highlights how the investors have been pouring money into gold at a record pace amid the ongoing market uncertainty.
The Gold Spot US Dollar price has rallied 25.95% from $2,623.81 on Dec. 31, 2024, to $3,304.80 per ounce as of today. Its record high stood at $3,318 per ounce as of the publication of this article.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">BREAKING: Gold fund net inflows have hit a record $80 BILLION year-to-date. This is 2 TIMES more than the previous high set in the full year 2020. Investors are pouring money into gold at a record pace as the market uncertainty has skyrocketed. As a result, gold prices have… <a href="https://t.co/GyD3Srw6hu">pic.twitter.com/GyD3Srw6hu</a>
&mdash; The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1912204673240662143?ref_src=twsrc%5Etfw">April 15, 2025</a></blockquote>
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Apart from this, the World Gold Council data for the first quarter released last week highlighted that Gold ETFs saw an inflow of 226.5 metric tons worth $21.1 billion, the largest amount since the first quarter of 2022.
Following this, Gold ETF holdings increased by 3% to 3,445.3 tons by March-end, the highest since May 2023 but below the record 3,915 tons in October 2020. However, the World Gold Council noted that U.S.-listed funds saw the largest inflow in the first quarter with 133.8 tons, followed by Europe-listed funds with 54.8 tons.
All Gold-linked ETFs have risen over 21% year-to-date in 2025.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Gold ETFs</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>Franklin Responsibly Sourced Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FGDL#NYSE">FGDL</a>)</td>
<td>21.75%</td>
<td>35.37%</td>
</tr>
<tr>
<td>Goldman Sachs Physical Gold ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/AAAU#BATS">AAAU</a>)</td>
<td>21.41%</td>
<td>34.91%</td>
</tr>
<tr>
<td>GraniteShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAR#NYSE">BAR</a>)</td>
<td>21.46%</td>
<td>34.99%</td>
</tr>
<tr>
<td>VanEck Merk Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OUNZ#NYSE">OUNZ</a>)</td>
<td>21.31%</td>
<td>34.75%</td>
</tr>
<tr>
<td>SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)</td>
<td>21.33%</td>
<td>34.61%</td>
</tr>
<tr>
<td>iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>)</td>
<td>21.42%</td>
<td>34.88%</td>
</tr>
<tr>
<td>SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>)</td>
<td>21.47%</td>
<td>35.05%</td>
</tr>
<tr>
<td>abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>)</td>
<td>21.43%</td>
<td>34.92%</td>
</tr>
<tr>
<td>iShares Gold Trust Micro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAUM#NYSE">IAUM</a>)</td>
<td>21.49%</td>
<td>35.04%</td>
</tr>
<tr>
<td>Invesco DB Precious Metals Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBP#NYSE">DBP</a>)</td>
<td>17.90%</td>
<td>24.48%</td>
</tr>
</tbody>
</table>
</figure>
See Also: <a href="https://www.benzinga.com/markets/25/04/44831287/trump-administration-imposes-up-to-245-tariff-on-chinese-imports-amid-intensifying-trade-battle">Trump Administration Imposes Up To 245% Tariff On Chinese Imports Amid Intensifying Trade Battle</a>
Why It Matters: When compared with data from over 25 years, gold prices have skyrocketed 1046.5% from $288.25 on Dec. 31, 1999, to $3,304.80 today. In comparison, the S&amp;P 500 index has risen by 267.31% from 1,469.25 on Dec. 31, 1999, to 5,396.63 as of Tuesday&#8217;s close.
According to Zafar Shaikh, the founder &amp; CEO of Invesys Capital, gold prices have doubled over the last 30 months. This last happened in 2008 and 2011. However, he cautioned that &#8220;So it may still have some juice left but if you are late to the GOLD party, take a deep breath &amp; let it pass rather than getting attracted by $5000 targets.&#8221;
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">30 months since <a href="https://twitter.com/hashtag/GOLD?src=hash&amp;ref_src=twsrc%5Etfw">#GOLD</a> started bullrun in 2022 &amp; it&#39;s up 100% Other times when GOLD doubled in 30M was in 2008 &amp; 2011 which was followed by major correction or top for gold So it may still have some juice left but if you are late to the GOLD party, take a deep breath &amp; let it… <a href="https://t.co/glE8ikwflx">pic.twitter.com/glE8ikwflx</a>
&mdash; Zafar Shaikh (@InvesysCapital) <a href="https://twitter.com/InvesysCapital/status/1912436389808906283?ref_src=twsrc%5Etfw">April 16, 2025</a></blockquote>
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Meanwhile, Christopher Aaron, the founder of iGold Advisor, highlighted the Dow-to-Gold ratio in a chart, which showed that the ratio had broken a 45-year best-fit trend. The chart said that this pattern suggested that gold could outpace general equities over the next several decades.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">No one is paying attention to this chart &#8212; and it is the single most important chart in all of finance&#8230;<a href="https://twitter.com/hashtag/gold?src=hash&amp;ref_src=twsrc%5Etfw">#gold</a> <a href="https://t.co/MQnJgUT5mp">pic.twitter.com/MQnJgUT5mp</a>
&mdash; Christopher Aaron (@iGlobalGold) <a href="https://twitter.com/iGlobalGold/status/1912289374584328695?ref_src=twsrc%5Etfw">April 15, 2025</a></blockquote>
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Economist Peter Schiff, on the other hand, spoke about gold mining stocks and said in a X post that &#8220;The time to invest in gold mining stocks is now before the market surges again!&#8221;
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Gold&#39;s explosive rally from $2,000 to $3,000 caught investors off guard, and now it&#39;s aiming for $3,500. With China's economic grip tightening, is the US prepared for a shift in the global balance? The time to invest in gold mining stocks is now before the market surges again!… <a href="https://t.co/eys6gXzJYV">pic.twitter.com/eys6gXzJYV</a>
&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1912429831582626183?ref_src=twsrc%5Etfw">April 16, 2025</a></blockquote>
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Price Action: Gold was trading at $3,304.80, whereas the ETF tracking the S&amp;P 500 index, SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), was down 0.73% in premarket.
Read Next:
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<li><a href="https://www.benzinga.com/25/04/44832789/sp-500-typically-gains-18-in-a-year-after-vix-drops-from-50-to-30-level-heres-what-analysts-say">S&amp;P 500 Typically Gains 18% In A Year After VIX Drops From 50 To 30 Level: Here&#8217;s What Analysts Say</a></li>
</ul>
Image Via Shutterstock

Analyst Color

Sector ETFs

Analyst Ratings

General

Gold Fund Inflows Smash Record With $80 Billion In 2025 — These ETFs Are Riding The $3,300 Surge

As the gold price crossed $3,200 per ounce for the first time, Ghana, a <a target="_blank" href="https://www.benzinga.com/topic/gold" rel="noreferrer noopener">major gold producer</a>, has officially centralized control over its gold exports under a newly established government entity.
Effective immediately, Ghana Gold Board (GoldBod) becomes the sole institution authorized to buy, sell, assay, and export gold from the country's artisanal and small-scale mining sector to curb illegal mining and <a target="_blank" href="https://www.benzinga.com/news/global/25/02/43514005/escalating-tariff-wars-tighter-african-supply-drive-gold-toward-3000-milestone" rel="noreferrer noopener">boost state revenues</a>.
"The Ghana Gold Board aims to regulate the gold industry, stabilize the cedi, and maximize revenue from gold exports. As Africa's leading gold producer, Ghana derives substantial foreign exchange earnings from gold. However, the benefits accrued from this valuable mineral remain minimal, often coming at a steep environmental cost," Finance Minister Cassiel Ato Baah Forson <a target="_blank" href="https://mofep.gov.gh/news-and-events/2025-01-28/finance-minister-inaugurates-technical-committee-to-establish-gold-board" rel="noreferrer noopener">said</a> in the inaugural statement earlier this year.
The government has also mandated that all foreign gold traders exit the local market by April 30, 2025, though they may still apply to buy gold directly from GoldBod under regulated conditions. All licensed buyers must now conduct transactions in Ghanaian cedis at prices based on the Bank of Ghana's reference rate.
By tightening the regulations, Ghana seeks to address the illegal mining issue, locally known as "galamsey." While small-scale mining accounts for 40% of the country's gold output, an estimated 70 to 80% is unlicensed. Illegal mining causes severe environmental damage, including deforestation, water pollution from mercury and heavy metals, and the destruction of cocoa farms, contributing to <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37900275/agriculture-commodities-rise-to-9-year-highs-cocoa-prices-skyrocket-chocolate-lover" rel="noreferrer noopener">spiking cocoa prices</a>.
The impact of galamsey on national revenues is substantial. Although Ghana's gold exports surged by 53.2% in 2024 to $11.64 billion, a large portion of gold produced by informal miners evades legal channels, limiting the government's ability to collect taxes and foreign reserves.
Officials believe consolidating trade under GoldBod will increase fiscal transparency and strengthen the cedi.
Gold mining is vital for the country's economy, contributing around 7% of the GDP and more than 1 million jobs. In 2024, production reached an estimated 4.9 million ounces (around 136 metric tons).
By 2026, major projects like Cardinal Resources' Namdini Mine, Newmont's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) Ahafo North, and Azumah Resources' Black Volta Gold Project could collectively add over 846,000 ounces in annual production.
Ghana will host its inaugural Mining in Motion Summit in Accra from June 2 to 4, 2025, to reinforce its leadership in responsible mining.
Read Next:
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<li><a href="https://www.benzinga.com/25/04/44773404/newmont-soars-with-a-new-60-price-target-leads-sp500-higher" target="_blank" rel="noreferrer noopener">Newmont Soars With A New $60 Price Target, Leads S&amp;P 500 Higher</a></li>
</ul>
Photo via Shutterstock

Large Cap

Legal

Ghana Tightens Control Over Gold Exports As Yellow Metal Prices Surge

As gold prices have been scaling new highs, experts believe there are more legs to this surge amid the growing economic uncertainty fueled by mixed economic data and President Donald Trump&#8216;s impending tariffs.
What Happened: Gold prices scaled a fresh high of $3,149.03 per ounce on Tuesday, rising as much as 18.78% on a year-to-date basis as of April 2.
Experts believe that tariffs are a reason for this surge because the disruption in global supply chains caused by the imposed duties will lead businesses to reassess their supply routes.
According to Eugenia Mykuliak, the founder and executive director at B2PRIME Group, a recalibration of the supply chain will lead to &#8220;Capital outflows from emerging markets and increased market volatility. As such, wary investors will naturally seek refuge in safe-haven assets, with gold being the most obvious one to benefit from this shift.&#8221;
Sean Hoey, the managing director of IBV International Vaults, also adds, &#8220;Gold's record-breaking surge is a clear reflection of growing economic uncertainty and market volatility fuelled by President Trump's latest tariffs.&#8221;
He believes that investors worldwide are turning to gold, &#8220;Reinforcing its role as a hedge against inflation and geopolitical instability.&#8221;
Mykuliak reaffirms that the price surge in the yellow metal is poised to continue. &#8220;Central banks and institutional investors are already increasing their gold reserves, and while the uncertainty lingers, gold's upward price trajectory is likely to continue,&#8221; she said.
See Also: <a href="https://www.benzinga.com/25/04/44600269/mark-cuban-argues-ais-new-sht-will-drive-growth-not-deflation">Mark Cuban Dismisses Concerns of AI Causing Deflation, Calls It The &#8220;Greatest Growth And Productivity Engine Ever&#8221;</a>
Why It Matters: According to Peter Schiff, the chief economist and global strategist at Europac and the chairman of SchiffGold, &#8220;The dollar has lost 95% of its purchasing power since the Fed's founding in 1913. Meanwhile, gold holds steady—which means going up when you measure it in dollar terms. In 1913, an ounce bought you a fine suit, and today, it still does. That's no accident. When you expand the money supply and availability of credit, prices rise.&#8221;
Schiff further cautions against trusting Federal Reserve Chairman Jerome Powell&#8217;s policies, arguing that neither inflation nor a potential recession is being effectively addressed. According to him, the true solutions lie in free market principles and investment in assets like gold.
While gold is up over 18% in 2025, here is a list of gold exchange-traded funds that investors can consider.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Gold ETFs</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>Franklin Responsibly Sourced Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FGDL#NYSE">FGDL</a>)</td>
<td>17.13%</td>
<td>36.65%</td>
</tr>
<tr>
<td>Goldman Sachs Physical Gold ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/AAAU#BATS">AAAU</a>)</td>
<td>17.23%</td>
<td>36.67%</td>
</tr>
<tr>
<td>GraniteShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAR#NYSE">BAR</a>)</td>
<td>17.30%</td>
<td>36.68%</td>
</tr>
<tr>
<td>VanEck Merk Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OUNZ#NYSE">OUNZ</a>)</td>
<td>17.18%</td>
<td>36.67%</td>
</tr>
<tr>
<td>SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)</td>
<td>17.17%</td>
<td>36.36%</td>
</tr>
<tr>
<td>iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>)</td>
<td>17.27%</td>
<td>36.60%</td>
</tr>
<tr>
<td>SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>)</td>
<td>17.27%</td>
<td>36.82%</td>
</tr>
<tr>
<td>abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>)</td>
<td>17.17%</td>
<td>36.59%</td>
</tr>
<tr>
<td>iShares Gold Trust Micro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAUM#NYSE">IAUM</a>)</td>
<td>17.31%</td>
<td>36.81%</td>
</tr>
<tr>
<td>Invesco DB Precious Metals Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBP#NYSE">DBP</a>)</td>
<td>16.06%</td>
<td>29.46%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: As of the publication of this article, the Gold Spot US Dollar was down 0.21% at $3,116.91 per ounce. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose on Tuesday. The SPY was up 0.28% to $560.97, while the QQQ advanced 0.81% to $472.70, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
On Wednesday, futures of the Dow Jones index were down 0.15%, whereas the S&amp;P 500 and Nasdaq 100 indices also dropped by 0.24% and 0.31%, respectively.
Read Next:
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<li><a href="https://www.benzinga.com/general/market-summary/25/04/44579361/charlie-mungers-top-pick-costcos-golden-touch-gold-prices-soar-58-outpacing-spy-since-it-started-selling-gold-33-months-ago" target="_blank" rel="noreferrer noopener">Charlie Munger's Top Pick Costco's Golden Touch: Gold Prices Soar 58%, Outpacing SPY Since It Started Selling Gold 33 Months Ago</a></li>
</ul>
Photo courtesy: Shutterstock

Market Summary

Federal Reserve

Gold Holds Above $3,100 Mark Amid Growing Economic Uncertainty: Here Are Some ETFs To Capitalize On The Golden Rush

Gold miners dominated <a target="_blank" href="https://www.benzinga.com/topic/mergers-and-acquisitions" rel="noreferrer noopener">mergers and acquisitions (M&amp;A) activity</a> in the metals and mining industry in 2024. Research by S&amp;P Global Market Intelligence found that yellow metal deals accounted for 70% of the total transaction value.
The <a target="_blank" href="https://www.spglobal.com/market-intelligence/en/news-insights/research/mining-mna-in-2024-gold-dominates-mna-space-for-2nd-consecutive-year" rel="noreferrer noopener">report</a> showed 62 gold-related transactions, compared to 47 in 2023, or a 32% growth. Although the overall deal value remained relatively close, at $26.36 billion, the $16.5 billion Newmont's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) acquisition of Newcrest was an outlier, skewing the numbers for the year before.
Most of 2024's M&amp;A occurred in two top jurisdictions, Australia and Canada. Gold's 27% surge in 2024 further incentivized acquisitions, while geopolitical risks, including the persisting conflict in Ukraine, tensions in the Middle East, and rising central bank purchases, encouraged expansions through acquisitions.
Northern Star Resources (OTCPK: NESRF) <a target="_blank" href="https://www.benzinga.com/24/12/42262825/northern-star-acquires-de-grey-for-33-billion-secures-promising-tier-1-asset" rel="noreferrer noopener">$3.26 billion acquisition</a> of De Grey Mining was the largest single transaction, consolidating ownership of one of Australia's most promising gold deposits. The number two spot went to AngloGold Ashanti's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AU#NYSE">AU</a>) <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/09/40790433/anglogold-ashanti-to-acquire-centamin-for-2-5b-to-become-fourth-largest-gold-producer" rel="noreferrer noopener">$2.48 billion takeover</a> of Centamin, strengthening its African presence.
In contrast, despite copper's growing popularity, copper-focused M&amp;A was comparatively subdued, with 16 total deals amounting to $5.7 billion. The largest one was Lundin Mining and BHP's joint <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/40031488/bhp-to-unlock-south-american-copper-riches-partners-with-lundin-for-filo-acquisition" rel="noreferrer noopener">$3.03 billion acquisition</a> of Filo Corp. If BHP's <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/05/39068033/time-runs-out-for-bhp-deal-49-billion-acquisition-of-anglo-american-proves-too-complex-to-solve" rel="noreferrer noopener">$49 billion bid for </a><a target="_blank" href="https://www.benzinga.com/news/large-cap/24/05/39068033/time-runs-out-for-bhp-deal-49-billion-acquisition-of-anglo-american-proves-too-complex-to-solve" rel="noreferrer noopener">Anglo American</a> had succeeded, the situation would have been vastly different.
S&amp;P's report also highlighted that while overall deal value remained stable, the absence of a $10 billion-plus megadeal meant that the average transaction size fell to $428.1 million—the lowest in five years and a 24% decline from 2023.
Large miners like Newmont sold smaller portfolio parts, focusing on top assets. At the same time, intermediate producers sought those assets to pursue margin-boosting synergies and growth necessary to break into the big leagues of producing over 1 million ounces annually.
In 2025, S&amp;P predicts further positive momentum in gold M&amp;A as metal prices bid new highs. The sector has already seen notable activity in early 2025, including Equinox Gold's $1.87 billion bid for Calibre Mining. However, <a target="_blank" href="https://www.benzinga.com/25/03/44394574/the-largest-shareholder-opposes-equinoxs-18-billion-acquisition" rel="noreferrer noopener">opposition from Equinox's top shareholder</a>, Van Eck, raises questions about whether the deal will proceed. Van Eck, who holds significant stakes in both companies, cited a lack of operational synergies as a key concern.
Gold Fields'<a target="_blank" href="https://www.benzinga.com/25/03/44458684/gruyere-power-struggle-gold-fields-surprise-offer-rejected-countermove-denied" rel="noreferrer noopener"> $2.1 billion offer</a> for Gold Road Resources announced this week was rejected as "opportunistic," with Gold Road arguing it undervalued its assets. The deal would have given Gold Fields full control over the Gruyere gold mine, but Gold Road proposed buying out Gold Fields' stake—a counteroffer that was subsequently rejected.
Read Next:
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<li><a href="https://www.benzinga.com/trading-ideas/movers/25/03/44481208/sandstorm-gold-shares-are-up-today-whats-going-on" target="_blank" rel="noreferrer noopener">Sandstorm Gold Shares Are Up Today: What's Going On?</a></li>
</ul>
Image via Shutterstock

Asset Sales

NESRF

Gold M&A Deals Are Accelerating, But Average Deals Are Smaller, Research Shows

Equinox Gold's (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/EQX#AMEX">EQX</a>) <a target="_blank" href="https://www.benzinga.com/news/legal/25/02/43938698/equinox-gold-buys-calibre-mining-for-1-8-billion-creating-canadas-second-largest-gold-producer" rel="noreferrer noopener">$1.8 billion acquisition</a> of Calibre Mining (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CXBMF#OTC">CXBMF</a>) has hit a hurdle. A top shareholder in both companies publicly opposed the plan, citing synergy concerns.
"We are not supportive of this transaction. We don't see any synergies between any of the companies' operations," Imaru Casanova, a portfolio manager at Van Eck, said <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-03-18/top-calibre-investor-opposes-equinox-s-1-8-billion-takeover-bid" rel="noreferrer noopener">per</a> Bloomberg's report on Tuesday.
"Both operate in the Americas, but in vastly different locations," she clarified, arguing that the deal dilutes Calibre's quality and potential, particularly as the company advances its flagship Valentine project in Canada.
According to Bloomberg, Van Eck is the largest Calibre shareholder, holding an 8.52% stake, and the second-largest Equinox shareholder, with an 8.86%.
Equinox announced the all-stock acquisition of Calibre last month as part of its strategy to consolidate gold assets and boost annual production. Equinox operates across Canada, Mexico, Brazil, and the United States, while Calibre's assets are primarily located in the United States and Nicaragua, Bloomberg writes.
Under the proposed structure, Calibre shareholders would receive shares of Equinox instead of cash at a 22% premium. The merger aims to create a mid-tier gold producer with a combined annual output of approximately 1.2 million ounces, placing it among the top 15 global producers.
The deal-making activity is unsurprising given the record-high gold prices, which have encouraged miners to expand. Gold broke the <a target="_blank" href="https://www.benzinga.com/25/03/44325928/gold-smashes-through-3000-mark-as-markets-brace-for-turbulence-and-fed-signals" rel="noreferrer noopener">milestone price of $3,000</a> per ounce last week, driven by central bank purchases and investor demand for safe-haven assets.
Jeffrey Gundlach, CEO of DoubleLine, recently predicted that gold could reach $4,000 per ounce, citing the sharp increase in central bank buying and ongoing geopolitical risks. Meanwhile, analysts at Macquarie have raised their price target to $3,500 per ounce by the third quarter of 2025.
With gold outperforming in 2024, Equinox reported a record year. It produced 621,893 ounces of gold and generated $1.5 billion in revenue, with an operating cash flow of $430 million. Looking ahead to 2025, Equinox expects to produce between 635,000 and 750,000 ounces, with an all-in-sustaining cost (AISC) between $1,455 and $1,550 per ounce.
Thus, even using the upper AISC estimate and assuming an average realized price of $3,000 per ounce, Equinox would generate around $1.1 billion in gross profit, maintaining last year's production level, making a good acquisition a lucrative proposal.
Still, given the lack of geographical proximity to unlock the synergies, Van Eck's opposition might shape investor sentiment, as approval requires support from two-thirds of both companies' shareholders.
Price Watch: VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) is up 32.81% year-to-date.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/etfs/specialty-etfs/25/03/44335436/gold-etfs-shine-as-spot-price-tops-3000-during-safe-haven-demand" target="_blank" rel="noreferrer noopener">Gold ETFs Shine As Spot Price Tops $3,000 During Safe-Haven Demand</a></li>
</ul>
Image via Shutterstock

CXBMF

Market Vectors ETF Trust Market Vectors Gold Miners

Calibre Mining's Largest Shareholder Opposes Equinox's $1.8 Billion Acquisition

WIIM

GOLD

Gold and Silver are trading lower, possibly due to a delay in tariffs. Also, Trump-Russia talks may reduce safe-haven asset demand.

While gold continues to climb toward its historic milestone of $3,000 per ounce, propelled by the escalating tariff wars, gold miners have <a target="_blank" href="https://www.benzinga.com/25/02/43590446/gold-prices-near-3000-outpacing-us-equities-as-it-hits-a-fresh-record-high-amid-donald-trumps-trade-war-led-market-uncertainty" rel="noreferrer noopener">lagged this success</a>. Rising labor costs, foreign government pressures, and inflation are squeezing profitability, raising questions on whether they can catch up.
Gold's recent performance has been stellar, as the precious metal gained 27% in 2024 and over 11% in the first six weeks of 2025. However, mining equities have not kept up the pace.
Top majors Barrick (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>) and Newmont NYSE: NEM) reported disappointing third-quarter earnings, as all-in-sustaining costs (AISC) rose by 20% and 13%, respectively.
"Labor remains one of the substantial expenses for miners, and we expect the inflation story to continue playing out over the next year or so," Sarah Tomlinson, director of mine supply at Metal Focus, noted for Reuters.
In Australia, a major gold-producing country, the Albanese government's "<a target="_blank" href="https://ministers.dewr.gov.au/watt/same-job-same-pay-growing-wages-australian-workers" rel="noreferrer noopener">Same Job, Same Pay</a>" legislation has increased wages for mine workers. The policy, which came into effect last November, ensures that temporary workers receive the same pay as permanent employees performing the same job.
Thus, 120 workers in New South Wales mines saw annual wages rise by up to $22,000, with another 1,500 workers likely to benefit from similar adjustments. While this policy promotes wage equity, it has added to miners' cost burdens, particularly in an industry grappling with labor shortages and declining interest in mining careers.
Rising gold prices have also driven governments' interest in boosting royalty participation within their jurisdictions. The military-led government has introduced new royalties and tax demands in Mali, Africa's fourth-largest gold producer. The government has increased its share of mining revenues and ordered Barrick to pay back <a target="_blank" href="https://www.benzinga.com/markets/commodities/24/10/41571989/mali-government-threatens-barricks-loulo-mine-permit-over-disputes-on-economic-benefit-sharin" rel="noreferrer noopener">hundreds of millions</a> in taxes and dividends.
In turn, this had a double-whammy impact: effectively, it drove down the country's production—which <a target="_blank" href="https://www.benzinga.com/news/global/25/02/43588936/malian-gold-output-falls-23-as-new-mining-law-pressures-producers" rel="noreferrer noopener">fell by 23%</a> in 2024—while making operations there less profitable.
Still, the gold mining industry has been grappling with rising AISC for years. Since 2016, the average AISC has climbed steadily, driven by higher energy, materials, and labor costs.
In 2022, AISC reached a record high of $1,276 per ounce, up 18% year over year, <a target="_blank" href="https://ibisingold.com/en/article/gold-mining-costs-have-reached-record-levels-what-is-next-for-the-metal" rel="noreferrer noopener">per</a> IBIS InGold.
Despite producer cost pressures, gold's long-term outlook remains strong. Sabrin Chowdhury, head of commodities analysis at BMI, expects it to continue outperforming other metals.
"Gold is benefiting strongly from economic and geopolitical risks, and we expect it to remain elevated," Chowdhury recently <a target="_blank" href="https://www.fitchsolutions.com/bmi/events/mining-and-metals-key-themes-2025-04-02-2025" rel="noreferrer noopener">noted</a>, highlighting central bank buying, trade tensions, and FED's rate cuts as supporting factors.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/02/43615367/peter-schiff-predicts-silvers-explosive-catch-up-move-as-the-gold-to-silver-ratio-crosses-901-analysts-foresee-silver-prices-to-touch-38-in-2025" target="_blank" rel="noreferrer noopener">Peter Schiff Says Silver Is Set For An ‘Explosive' Rally As Yellow Metal Nears $3,000: ‘If You Think You Missed The Boat On Gold'</a></li>
</ul>
Photo by Inozemtsev Konstantin via Shutterstock

Global

Media

Trading Ideas

Gold Nears $3,000 But Miners Struggle As Rising Costs Squeeze Profits

Goldman Sachs has postponed its projection for gold prices to hit $3,000 per ounce, shifting the timeline from early 2026 to mid-2026. The investment bank adjusted its expectations from the Federal Reserve, as tighter-than-expected monetary policy would influence <a target="_blank" href="https://www.benzinga.com/topic/gold" rel="noreferrer noopener">gold prices</a>.
Goldman analysts Lina Thomas and Daan Struyven forecast gold to reach $2,910 per ounce by the end of the year. The bank's economists now anticipate 75 basis points of rate cuts in 2025, down from the previously expected 100 basis points.
"Opposing forces — lower speculative demand and structurally higher central bank buying — have effectively offset each other, keeping gold prices range-bound over the past few months," they said in a note per Bloomberg's <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-06/goldman-pushes-back-3-000-gold-forecast-on-fewer-us-rate-cuts" rel="noreferrer noopener">report</a>, attributing the long-term demand to central banks buying appetite.
"Looking ahead, we forecast monthly purchases to average 38 tons through mid-2026," they stated.
Gold delivered a <a target="_blank" href="https://www.benzinga.com/markets/commodities/24/12/42502069/gold-poised-for-its-best-year-in-a-decade-while-bitcoin-surges-analysts-eye-2025-as-a-golden-era-for-precious-metal-amid-michael-saylors-push-for-btc-as-a-reserve-asset" rel="noreferrer noopener">robust performance</a> in 2024, gaining 27% due to monetary easing, central bank purchases, and lingering inflation fears. However, the rally lost momentum in late 2024 as the U.S. dollar strengthened following the election-driven optimism.
Still, the U.S. is finding other ways to take advantage of higher-for-longer gold prices. President Joe Biden just approved the final permit for the Stibnite Project in Idaho, a mining initiative led by Perpetua Resources (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PPTA#NASDAQ">PPTA</a>) and backed by billionaire investor John Paulson.
This project could supply more than 35% of the U.S. demand for antimony, a critical mineral essential for solar panels, flame retardants and military equipment, while also producing around 450,000 ounces of gold annually.
Although the project cost around $1.3 billion in 2020, the final number will be higher. Accounted reserves include 148 million pounds of antimony and 6 million ounces of gold, and production is set for 2028.
Antimony prices surged in 2024, rising over 200% and over 40% in a single day after China issued an <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/24/12/42294914/mp-materials-are-on-the-rise-today-whats-going-on" rel="noreferrer noopener">export ban</a> on December 3.&nbsp;However, extreme price volatility and control over the market (China accounted for 48% of<a target="_blank" href="https://www.csis.org/analysis/chinas-antimony-export-restrictions-impact-us-national-security" rel="noreferrer noopener"> global production</a> and 63% of U.S. imports in 2023) are risky for producers.
Thus, the dual output of gold and antimony offers financial resilience, reducing dependence and insulating the project from external price fluctuations.&nbsp;
Read Next:
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<li><a href="https://www.benzinga.com/25/01/42783039/kobold-metals-raises-537-million-targets-going-public-within-a-few-years" target="_blank" rel="noreferrer noopener">Bill Gates And Jeff Bezos Backed Mining Startup Raises $537 Million, Targets Going Public In Few Years</a></li>
</ul>
Image via Shutterstock

Price Target

PPTA

Goldman Sachs Delays $3,000 Gold Forecast, Sees Fewer Rate Cuts In 2025

Rolex SA, the Swiss luxury watchmaker, has raised prices on several of its models following an upswing in gold prices in 2024, <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-02/rolex-kicks-off-2025-by-hiking-watch-prices-after-gold-soars?srnd=phx-industries&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a> reported.
According to the report, the price of the yellow gold Day-Date and yellow gold GMT-Master II has increased by almost 8% to 44,200 euros and 44,600 euros, respectively.
The price hikes follow gold&#8217;s remarkable 27% gain in 2024, reflecting its role as a safe-haven asset that remains prominent amid global economic uncertainties and geopolitical tensions.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/12/42666501/starbucks-faces-major-strike-on-christmas-eve-300-locations-affected-as-5000-workers-walk-out" rel="noreferrer noopener">Starbucks Faces Major Strike On Christmas Eve: 300+ Locations Affected As 5,000 Workers Walk Out</a>
While Rolex traditionally adjusts prices at the beginning of the year, this year&#8217;s changes surpass the 4% increases seen for some of its models in the beginning of 2024, Bloomberg noted.
According to a report, the gold prices are expected to continue their upward trajectory and reach $2,795 per troy ounce by the end of 2025, a <a target="_blank" href="https://www.benzinga.com/markets/commodities/25/01/42759408/gold-prices-to-climb-7-in-2025-amid-trumps-return-to-white-house-and-geopolitical-tensions-momentum-is-taking-back-over" rel="noreferrer noopener">7% increase from current levels</a>.
Central banks are likely to drive demand as they diversify reserves in the midst of geopolitical uncertainties.
Key drivers of the expected increase include central banks&#8217; diversification away from the U.S. dollar following sanctions on Russia, anticipated interest rate cuts by the U.S. Federal Reserve, and rising concerns about U.S. <a target="_blank" href="https://www.benzinga.com/24/12/42594797/trump-wants-to-get-rid-of-the-debt-ceiling-30-year-treasury-bonds-fall-to-2024-lows-stocks-cut-gains" rel="noreferrer noopener">government debt</a> under President-elect&nbsp;Donald Trump.
As per&nbsp;<a target="_blank" href="https://pro.benzinga.com/" rel="noreferrer noopener">Benzinga Pro</a>, gold ETFs have increased in the past year as of Tuesday, 31st Dec.&nbsp;SPDR&nbsp;Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) was up by 26.85%,&nbsp;iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) rose by 26.85%, and&nbsp;abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>) was up by 26.90%.
Read Next:
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<li><a href="https://www.benzinga.com/24/12/42729529/social-media-stocks-react-as-trump-targets-censorship-and-delays-tiktok-ban" target="_blank" rel="noreferrer noopener">Trump Administration to Challenge Social Media Censorship, Setting Stage for Conflict with EU Regulations</a></li>
</ul>
Photo by panlertb via Shutterstock

Gold Price Surge Pushes Rolex to Raise Prices for Iconic Watches

Gold prices are expected to continue their upward trajectory in 2025, though at a slower pace compared to last year's remarkable 27% rally. Analysts anticipate a 7% increase from current levels by the end of the year, signaling a more moderate yet steady rise.
What Happened: Wall Street analysts project that gold prices will climb to about $2,795 per troy ounce by the end of 2025, a 7% increase from current levels, Financial Times <a href="https://www.ft.com/content/9fa96c1d-03f2-4d25-9644-b29ae19407aa">reported</a> on Thursday. This forecast comes on the heels of significant central bank purchases, which saw global institutions buy 694 tonnes of gold in the first nine months of 2024.
Key drivers of the expected increase include central banks' diversification away from the U.S. dollar following sanctions on Russia, anticipated interest rate cuts by the U.S. Federal Reserve, and rising concerns about U.S. government debt under President-elect Donald Trump.
Henrik Marx, global head of trading at Heraeus Precious Metals, said, &#8220;Whatever he announces will increase debt, leading to a weaker dollar and increased inflation. That is usually a nice mixture for gold."
 Geopolitical tensions in the Middle East and Ukraine are also contributing to the bullish outlook for gold.
See Also: <a href="https://www.benzinga.com/tech/25/01/42757901/elon-musk-fireworks-or-explosive-device-caused-fatal-cybertruck-incident-at-las-vegas-trump-hotel-vehicle-was-rented">Elon Musk: Fireworks Or Explosive Device Caused Fatal Cybertruck Incident At Las Vegas Trump Hotel; Vehicle Was Rented</a>
Notably, Goldman Sachs has issued the most optimistic forecast, expecting prices to hit $3,000 per troy ounce by year's end. Meanwhile, Barclays and Macquarie have issued more conservative projections, predicting a drop to approximately $2,500 per troy ounce, a 4% decline from current levels. 
"Momentum is taking back over, combined with geopolitical tensions, which is going to add more fuel to the fire," said Michael Haigh, head of commodities research at Société Générale. Haigh predicts that gold prices could reach $2,900 per troy ounce by the end of 2025.
Why It Matters: Gold's role as a safe-haven asset remains prominent amid global economic uncertainties and geopolitical tensions. Central banks have been increasingly diversifying their reserves, moving away from the dollar to mitigate risks. The World Gold Council has described this year's growth as "positive but much more modest" compared to 2024.
However, the rise of alternative assets like Bitcoin ETFs is also reshaping the investment landscape. Investors are exploring new <a href="https://www.benzinga.com/etfs/currency-etfs/24/12/42750554/golds-shine-fades-as-bitcoin-etfs-rise-the-new-safe-haven-champion">safe-haven options</a>, potentially challenging gold's dominance in this space. The interplay between traditional and emerging assets will be a critical trend to watch in 2025.
Price Action: As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, gold ETFs have increased in the past one year, as of Tuesday, 31st Dec. SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) was up by 26.85%, iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) was rose by 26.85% and abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>) was up by 26.90%. Meanwhile, Barrick Gold Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>) fell by 14.32% over the year, Newmont Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) dropped by 10% while Royal Gold, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGLD#NASDAQ">RGLD</a>) increased by 9%.
Read Also: 
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<li><a href="https://www.benzinga.com/trading-ideas/movers/25/01/42757978/bitcoin-ethereum-dogecoin-begin-new-year-on-a-healthy-note-analyst-says-this-blue-chip-crypto-can-witness-good-amount-of-action-in-early-2025">Bitcoin, Ethereum, Dogecoin Begin New Year On A Healthy Note: Analyst Says This Blue Chip Crypto Can Witness &#8216;Good Amount Of Action&#8217; In Early 2025</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

RGLD

Gold Prices To Climb 7% In 2025 Amid Trump's Return To White House And Geopolitical Tensions: 'Momentum Is Taking Back Over'

Analysts predict a good year for gold in 2025 after it&#8217;s poised for the best annual performance in over a decade in 2024. However, Michael Saylor, co-founder and executive chairman of MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), has <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42413650/michael-saylor-urges-us-to-ditch-gold-for-bitcoin-sell-the-past-own-the-future">called for a dramatic shift </a>in U.S. economic strategy, urging the country to abandon gold as a reserve asset in favor of Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>).
What Happened: The World Gold Council in its 2025 outlook has outlined three scenarios for the precious metal in the upcoming year. According to them, gold will &#8220;remain rangebound&#8221; if existing market expectations are correct.
Explaining its rationale for the rangebound assertion, the council notes that &#8220;a combination of higher rates and lower economic growth could negatively affect investors and consumers.&#8221;
On the flip side, &#8220;significantly lower interest rates or a deterioration in geopolitics or market conditions will improve gold's performance.&#8221;
JPMorgan has said that it expects gold prices to &#8220;find continued support from central banks, particularly in emerging markets. Critically, gold—the original safe-haven asset—can serve as an attractive hedge against both geopolitical risk and uncertainty around sovereign debt and deficits.&#8221;
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42413650/michael-saylor-urges-us-to-ditch-gold-for-bitcoin-sell-the-past-own-the-future">Michael Saylor Urges US To Ditch Gold For Bitcoin: &#8216;Sell The Past, Own The Future&#8217;</a>
Goldman Sachs, on the other hand, forecasts gold prices will reach $2,700 by early next year, &#8220;buoyed by interest rate cuts by the Federal Reserve and gold purchases by emerging market central banks. The metal could get an additional boost if the U.S. imposes new financial sanctions or if concerns mount about the U.S. debt burden.&#8221;
Bitcoin Bulls Disagree
Despite a largely positive outlook for gold in 2025, few Bitcoin bulls think differently. Speaking on an episode of the Galaxy Brains podcast, Saylor labeled gold as a "shiny dead rock.&#8221;
"If you want to elevate the U.S.&#8217;s economic leadership in the world, there are two very simple strategies," Saylor said. "Dump the gold and buy Bitcoin."
He suggested that replacing gold with Bitcoin as a strategic reserve asset would allow the U.S. to demonetize gold—an asset heavily held by rival nations—and capitalize on Bitcoin&#8217;s growth potential.
Price Action: Gold spot prices have risen by 28.63% year-to-date, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>. This is gold&#8217;s best performance since 2007 when gold surged by over 31%.
Here&#8217;s how a few other gold ETFs have performed this year.
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>ETFs</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Franklin Responsibly Sourced Gold ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FGDL#NYSE">FGDL</a>)</td>
<td>29.07%</td>
</tr>
<tr>
<td>iShares Gold Trust Micro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAUM#NYSE">IAUM</a>)</td>
<td>28.52%</td>
</tr>
<tr>
<td>SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>)</td>
<td>28.55%</td>
</tr>
<tr>
<td>Aberdeen Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>)</td>
<td>28.46%</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020045/Gold-ETf-final-1024x576.png" alt="" class="wp-image-693140" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020045/Gold-ETf-final-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020045/Gold-ETf-final-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020045/Gold-ETf-final-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020045/Gold-ETf-final-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020045/Gold-ETf-final.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
In comparison, Bitcoin ETFs have surged over four times during the same period.
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>ETF</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Fidelity Wise Origin Bitcoin Fund (BATS:<a class="ticker" href="https://www.benzinga.com/stock/FBTC#BATS">FBTC</a>)</td>
<td>138.83%</td>
</tr>
<tr>
<td>Grayscale Bitcoin Mini Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BITC#NYSE">BITC</a>)</td>
<td>123.13%</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020016/Bitcoin-ETfs-final-1024x576.png" alt="" class="wp-image-693139" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020016/Bitcoin-ETfs-final-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020016/Bitcoin-ETfs-final-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020016/Bitcoin-ETfs-final-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020016/Bitcoin-ETfs-final-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16020016/Bitcoin-ETfs-final.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
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<li><a href="https://www.benzinga.com/24/12/42495307/charlie-munger-identified-this-stock-30-years-ago-after-warren-buffett-passed-on-it-heres-how-it-is-doing-as-it-accomplishes-four-milestones-in-its-current-quarter">Charlie Munger Identified This Stock 30 Years Ago After Warren Buffett Passed On It: Here&#8217;s How It Is Doing Now</a></li>
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Photo courtesy: Shutterstock

$BTC

BITC

Fidelity Wise Origin Bitcoin Fund Fidelity Wise Origin Bitcoin Fund

FBTC

MSTR

Gold Poised For Its Best Year In A Decade While Bitcoin Surges: Analysts Eye 2025 As A Golden Era For Precious Metal Amid Michael Saylor's Push For BTC As A Reserve Asset

Goldman Sachs has projected a substantial increase in gold prices for the coming year, driven by heightened central bank acquisitions and expected reductions in U.S. interest rates.
What Happened: Goldman Sachs has identified gold as a leading commodity trade for 2025, with prices anticipated to reach $3,000 per ounce by December 2025. Analysts, including Daan Struyven, pointed to increasing demand from central banks as a key driver of this forecast, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-11-18/goldman-says-go-for-gold-as-central-banks-buy-fed-cuts-in-25">reported</a> on Monday.
"Go for gold," analysts said in a note.
They also foresee a cyclical boost from rising investments in exchange-traded funds (ETFs) as the Federal Reserve enacts rate cuts. Additionally, geopolitical risks, particularly concerning Iran, could influence oil supply due to potential increased U.S. support for Israel and stricter sanctions enforcement.
See Also: <a href="https://www.benzinga.com/markets/equities/24/11/42028797/tesla-soars-over-5-in-overnight-trading-as-trump-administration-reportedly-seeks-to-ease-fsd-norms?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla Soars Over 5% In Overnight Trading As Trump Administration Reportedly Seeks To Ease FSD Norms</a>
Gold ETFs have demonstrated robust performance in terms of year-to-date (YTD) returns, as per <a href="https://pro.benzinga.com">Benzinga Pro</a>. SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) has risen 24.05%, iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) increased by 24.22%, SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>) climbed by 24.38%, abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>) gained 24.29%, and iShares Gold Trust Micro (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAUM#NYSE">IAUM</a>) advanced 24.08% year-to-date.
Why It Matters: The forecast by Goldman Sachs comes amid significant movements in the gold market. In October, the SPDR Gold Trust (GLD), the largest physically backed gold ETF, experienced its highest monthly<a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41663633/biggest-gold-etf-posts-highest-monthly-inflows-in-2-5-years-as-investors-rush-to-"> inflows in 2.5 years earlier this month,</a> driven by economic and policy uncertainties surrounding the U.S. presidential election. This influx pushed the fund&#8217;s assets under management to $79.7 billion by the end of October, with $1.8 billion in net inflows for the month.
However, the sentiment shifted dramatically after Donald Trump&#8216;s election victory, leading to a<a href="https://www.benzinga.com/etfs/specialty-etfs/24/11/41888750/gold-etf-hit-with-1-billion-outflow-investors-dump-safe-haven-asset-after-trump-win"> $1 billion outflow </a>from the SPDR Gold Trust (GLD) in early November. This marked the largest weekly outflow in over two years, as investors moved away from the safe-haven asset, anticipating a strong dollar under Trump&#8217;s second term.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/24/11/42022585/michael-van-de-poppe-says-bitcoin-ethereum-and-altcoins-close-to-the-point-where-investors-can-buy-the-dip?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Michael Van De Poppe Says Bitcoin, Ethereum And Altcoins Close To The Point Where Investors Can &#8216;Buy The Dip&#8217;</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
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'Go For Gold,' Says Goldman Sachs: Precious Yellow Metal Price Would Rise In 2025 Amid Central Bank Buying, Fed Rate Cuts

The Federal Reserve started the new rate cycle era last week, infusing strong optimism in various areas of the global markets and commodities. Wall Street has been hovering around a 52-week high. While the gains were broad-based, some areas were the biggest gainers and hit a 52-week high each on Sept. 20, 2024. We have highlighted three ETF areas that came to the forefront due to the Fed-induced rally.
<h2>Inside the Latest Fed Rate Cut</h2>
On Wednesday, the Fed announced a 50-basis-point cut in interest rates, marking its first reduction since March 2020. The new benchmark policy rate now stands between 4.75% and 5.00%. The rate cut was widely anticipated, though there was uncertainty over its size. A 25-basis-point reduction was expected by many, but softer-than-expected economic data led to calls for a larger cut. Ultimately, the Fed opted for the half-percentage-point reduction.
<h2>Further Rate Cuts Expected by Year-End</h2>
The Federal Open Market Committee&#39;s (FOMC) &quot;dot plot&quot; of individual officials&#39; projections indicates the possibility of another 50 basis points of cuts by the end of the year, aligning with market expectations. The committee also forecasts an additional percentage point of cuts by 2025 and another half-point cut by 2026, eventually reducing the benchmark rate by 2 percentage points.
Against this backdrop, below we highlight a few winning exchange-traded funds areas.
<h2>Winning ETF Sectors</h2>
<h2>Utilities ETF</h2>
The Utility sector tends to be stable and provides consistent dividends. This sector also performs better in a low-rate environment. Virtus Reaves Utilities ETF (ARCA:UTES), S&amp;P 500 Utilities Sector SPDR (ARCA:XLU) and Fidelity Utilities MSCI ETF (ARCA:FUTY) are the utilities ETFs that hit a 52-week high on Sept. 20, 2024.
<h2>India ETF</h2>
India ETFs are also hitting highs. Franklin India ETF (ARCA:FLIN), India Internet &amp; Ecommerce ETF (ARCA:INQQ), First Trust India Nifty 50 Equal Weight ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nfty#NASDAQ">NFTY</a>) and Columbia India Consumer ETF (ARCA:INCO), probably saw a spike on the likelihood of a falling U.S. dollar.
India&#39;s potential for growth makes it an attractive choice for investors. Recent upgrades in growth forecasts for the country, driven by robust public investment and strong private consumption, have boosted the prospects for these ETFs.
Consumers in India are expected to increase their spending on both essential and non-essential items per the country&#39;s central bank, a trend likely to continue over the next year. The forecasted rise in consumer consumption in the upcoming festive season is a tailwind.
<h2>Gold ETF</h2>
Gold bullion ETFs like iShares Gold Trust Micro (ARCA:IAUM), GraniteShares Gold Trust Shares (ARCA:BAR), Vaneck Merk Gold ETF (ARCA:OUNZ) and Physical Gold ETF (ARCA:SGOL) have hit a 52-week high lately. As the Fed eased its policy, the greenback lost strength and bond yields fell. Both factors should go in favor of gold investing.
<a href="https://www.zacks.com/stock/news/2340099/3-etf-sectors-hitting-52-week-highs-after-fed-rate-cut?cid=CS-BENZ-FT-etf_news_and_commentary-2340099">To read this article on Zacks.com click here.</a>

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3 ETF Sectors Hitting 52-Week Highs After Fed Rate Cut

Goldman Sachs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) reinforced its bullish outlook on gold, citing increased central bank demand and expectations of a U.S. Federal Reserve <a target="_blank" href="https://www.benzinga.com/federal-reserve" rel="noreferrer noopener">interest rate cut</a> tomorrow.
"While we see some tactical downside to gold prices under our economists' base case of a 25bp Fed cut on Wednesday, we reiterate our long gold trading recommendation and our price target of $2,700/oz by early 2025," the investment bank said in a note.
With the price of gold making new all-time highs, reaching 2589.60 on the spot market, the two-quarter upside price target of 5% doesn't seem much. At the moment, the market is pricing a 65% chance of a 50-basis-point cut tomorrow, <a target="_blank" href="https://www.google.com/search?client=firefox-b-d&amp;q=cme+fed+watchtool" rel="noreferrer noopener">per</a> the CME FedWatch tool.
Now read:<a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40861213/why-interest-rate-cuts-wont-automatically-boost-the-stock-market" rel="noreferrer noopener"> Why Interest Rate Cuts Won't Automatically Boost The Stock Market</a>
Gold is traditionally seen as a hedge against inflation and economic uncertainty. With the U.S. recession still in discussion and a Fed pivot toward more accommodative monetary policies, investor interest in gold is <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40689742/goldman-sachs-bullish-on-gold-wall-street-giant-targets-2-700-by-early-2025-driven-" rel="noreferrer noopener">expected to remain strong</a>, accompanied by buying from foreign central banks, <a target="_blank" href="https://www.benzinga.com/markets/asia/24/05/38649656/how-chinas-central-bank-gold-buying-frenzy-drove-prices-to-record-highs-attracting-gen-z-to-gold-bea" rel="noreferrer noopener">particularly China</a>.
The Fed's anticipated rate cuts could <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40861213/why-interest-rate-cuts-wont-automatically-boost-the-stock-market" rel="noreferrer noopener">lower bond yields</a>, making gold more attractive as it does not generate interest.
In contrast to its positive gold outlook, the bank recently downgraded its projection for iron ore prices. The bank slashed its fourth-quarter 2024 forecast by $15 per metric ton, lowering it to $85 due to concerns of oversupply despite stabilizing demand from China.
Despite China's attempts at economic stimulus and rising steel demand, the broader economic slowdown and the real estate crisis have dampened demand for iron ore. Its futures briefly dipped below $90, reaching the lowest point in almost two years.
Goldman noted that while there might be short-term support due to restocking ahead of the holiday week in October, but the continued buildup of iron ore inventories is likely to drive prices further down.
Supply-demand imbalances have been a key issue for the market, particularly with major players like Brazil's Vale and Australia's BHP maintaining production levels.
Kallanish Consulting analyst Ian Roper explained the current price dynamics <a target="_blank" href="https://www.bnnbloomberg.ca/business/international/2024/09/11/iron-ore-tests-floor-as-plunge-to-90-a-ton-puts-mines-at-risk/" rel="noreferrer noopener">for</a> Bloomberg.
"We need to eliminate about 100 million tons to balance this market, and to do that, we need prices to settle in the $80s," he noted.
Also read:
<ul>
<li><a href="https://www.benzinga.com/news/24/09/40875211/bhp-group-sounds-alarm-on-copper-supply-ai-and-ev-growth-could-drive-prices-soaring-report" target="_blank" rel="noreferrer noopener">BHP Group Sounds Alarm on Copper Supply, AI and EV Growth Could Drive Prices Soaring: Report</a></li>
</ul>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
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Goldman Sachs Sees Gold Higher, Takes A Downbeat Stance On Iron Ore

As the price of gold continues to soar, prominent economists Mohamed A. El-Erian and Peter Schiff are emphasizing the ongoing strength of the gold market. El-Erian highlights the significant expansion of the commodity rally, while Schiff underscores the importance of holding onto gold and silver assets amid a promising market outlook.
What Happened: El-Erian, the chief economic advisor at Allianz, took to X to share his thoughts on the recent surge in gold prices. He pointed out that the price of gold has hit over 20 new highs this year, with the latest highs being accompanied by a significant expansion of the commodity rally. El-Erian also noted that the drivers behind these highs now include a wider range of demand and supply factors.
&#8220;This month's new highs in the price of #gold is not unusual,&#8221; El-Erian wrote.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">This month's new highs in the price of <a href="https://twitter.com/hashtag/gold?src=hash&amp;ref_src=twsrc%5Etfw">#gold</a> is not unusual. We have had over twenty new highs so far this year. What I find more notable: (i) Recent highs have been accompanied by a significant broadening of the commodity rally; and (ii) Drivers now encompass a wider set of… <a href="https://t.co/TnynVeWSnQ">pic.twitter.com/TnynVeWSnQ</a>
&mdash; Mohamed A. El-Erian (@elerianm) <a href="https://twitter.com/elerianm/status/1792983521247764516?ref_src=twsrc%5Etfw">May 21, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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Meanwhile, Schiff, a <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38911373/peter-schiff-says-bitcoin-is-dead-long-live-silver-but-is-it-really-true">well-known gold advocate</a> and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) critic, also took to X to advise investors to hold on to their gold and silver assets. He warned that selling during a bull market is easy, but buying back in is the hard part. Schiff believes that the current gold rally is just getting started and that good things come to those who wait.
&#8220;Don&#8217;t sell any of your #gold or #silver. It&#8217;s easy to sell out of a bull market. The hard part is buying back in. Just sit tight and enjoy the ride. It&#8217;s likely just getting started. Good things come to those who wait. We&#8217;ve waited a long time, so what&#8217;s coming should be great,&#8221; Schiff wrote. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Don&#39;t sell any of your <a href="https://twitter.com/hashtag/gold?src=hash&amp;ref_src=twsrc%5Etfw">#gold</a> or <a href="https://twitter.com/hashtag/silver?src=hash&amp;ref_src=twsrc%5Etfw">#silver</a>. It&#39;s easy to sell out of a bull market. The hard part is buying back in. Just sit tight and enjoy the ride. It&#39;s likely just getting started. Good things come to those who wait. We&#39;ve waited a long time, so what&#39;s coming should be great.
&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1792997390334513439?ref_src=twsrc%5Etfw">May 21, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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Investors interested in gold ETFs might check&nbsp;SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>), Abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>), VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>), which invests in global gold miner equities.
<a href="https://x.com/PeterSchiff/status/1792997390334513439"></a>See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38910906/bitcoin-dogecoin-ethereum-retrace-on-profit-taking-by-retail-investors-analyst-predicts-pa?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Dogecoin, Ethereum Retrace On Profit-Taking By Retail Investors: Analyst Predicts Parabolic Rise For King Crypto Following Consolidation Phase</a>
Why It Matters: The price of gold has been on a steady rise, recently hitting a new record high of $2,450 per ounce. This surge is attributed to the expectation that the U.S. Federal Reserve <a href="https://www.benzinga.com/trading-ideas/24/05/38941163/gold-shatters-expectations-with-a-record-high-of-2-450-per-ounce-amid-expectations-of-lower-interes">might lower interest rates</a> by September, making gold a more attractive investment option.
This trend has also been reflected in the actions of prominent investors. For instance, Michael Burry, the legendary investor who predicted the 2008 financial crisis, <a href="https://www.benzinga.com/markets/asia/24/05/38878116/big-short-investor-michael-burry-bets-heavy-on-gold-renewable-energy-stocks-exits-amazon-alphabet">recently made significant bets on gold</a> and renewable energy stocks, indicating a shift in investment strategies towards physical commodities and renewable energy.
However, not everyone is optimistic about the economic situation. Schiff, who is also the CEO of Euro Pacific Capital, recently criticized President Joe Biden&#8216;s new tariffs, <a href="https://www.benzinga.com/news/24/05/38862552/mohamed-el-erian-says-bond-and-equity-prices-getting-a-boost-after-softer-than-expected-headline-cpi">labeling them as taxes</a> that will only add to the economic misery.
Price Action: On Tuesday, Gold spot prices closed at $2,422 per ounce, up 0.07%, according to the data <a href="https://pro.benzinga.com/dashboard">from Benzinga Pro</a>.
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/05/38909046/top-trader-ditches-bitcoin-for-altcoins-dogecoin-killer-shiba-inus-potential-breakout-and-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Top Trader Ditches Bitcoin For Altcoins, &#8216;Dogecoin Killer&#8217; Shiba Inu&#8217;s Potential Breakout And More</a>
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This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

Mohamed El-Erian And Bitcoin-Critic Peter Schiff Highlight Gold's Soaring Prices And Market Momentum: 'Just Sit Tight And Enjoy The Ride'

U.S. government debt is reaching unsustainable levels, and the latest analysis points to an even<a href="https://www.benzinga.com/news/treasuries/24/02/37227285/government-debt-exceeds-120-of-gdp-why-former-imf-economist-very-worried-about-us-fiscal-crisis"> more concerning future.</a>
A new economic model developed by Bloomberg Economics predicts that in 88% of scenarios, U.S. debt as a percentage of GDP will rise in the coming 10 years.
In a Monday letter to investors, Citadel founder Ken Griffin <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38039631/ken-griffin-slams-irresponsible-us-deficit-we-must-stop-borrowing-at-the-expense-">referred to mounting national debt as a significant issue</a>, saying that &#8220;we must stop borrowing at the expense of future generations.&#8221;
According to a recent survey, about 85% of Americans worry that current debt levels <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37324835/ticking-time-bomb-over-85-of-americans-fear-national-debt-crisis-impact-on-their-fu">could have a negative impact in their future</a>.
Official data from the St. Louis Fed shows that debt equaled 121% of the country&#8217;s GDP in the last quarter of 2023. The rate has floated around 120% in past years, after peaking at 132% during the COVID pandemic. These levels are above a previous historical record set following World War II.
In late May 2023, <a href="https://www.benzinga.com/news/23/06/32704441/biden-signs-debt-ceiling-bill-to-avert-government-default">the government averted a default by raising the debt limit even higher</a> in an emergency measure. While lawmakers on both sides of the aisle agree that government borrowing has reached unhealthy levels, a lack of agreement as to how to solve the problem keeps Congress from finding a satisfactory solution.
Earlier this year Fed Chair Jerome Powell said that the current rate of debt acquisition <a href="https://www.benzinga.com/startups/24/02/37156426/jerome-powell-says-34-trillion-national-debt-is-ready-for-an-adult-conversation-janet-yellen-calls-s">means we're ​​&#8221;borrowing from future generations,"</a> and called for elected officials to have an adult conversation "about getting the federal government back on a sustainable fiscal path.&#8221;
With <a href="https://www.benzinga.com/general/24/03/37851477/u-s-national-debt-has-increased-by-nearly-8-5-billion-per-day-over-the-past-year">national debt increasing by an average of $8.5 billion a day during the past year</a>, Republicans generally argue for spending cuts, while Democrats point towards problems in tax revenue and high interest rates as the causes behind the rising fiscal deficit.
A recent budget proposal by President Joe Biden is aimed at reducing the federal deficit by $3 trillion in the next decade <a href="https://www.benzinga.com/24/03/37603424/bidens-budget-aims-to-slash-us-deficit-by-3-trillion-next-decade-through-higher-taxes-on-wealthy-big">by raising taxes on wealthy individuals and corporations</a>.
Where To Find Safe Haven: Bank of America chief strategist Michael Hartnett recently linked a rise in <a href="https://www.benzinga.com/money/how-to-invest-in-gold">gold</a> and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) with rising concerns over debt, as investors look for hedges against a possible debt-led crises affecting the U.S. economy.
As opposed to the U.S. dollar, which can be emitted to infinity by printing new cash, both Bitcoin and gold have a cap on their supply, making them safer assets to store value in times of economic volatility.
Also read: <a href="https://www.benzinga.com//node/37227285">Government Debt Exceeds 120% Of GDP: Why Former IMF Economist &#8216;Very Worried&#8217; About US Fiscal Crisis</a>
SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), the largest ETF following the gold market by total assets, has gained over 23% in the last six months. Other gold ETFs, including iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) and Abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>) follow a similar trajectory.
<a href="https://www.benzinga.com//node/38053974">Bitcoin has hit a slump this week,</a> losing 5% of its value at the time of writing on Tuesday, yet the cryptocurrency has been enjoying a rally in recent months.
When concerns about national debt dominate the news, investors typically seek assets known for retaining value. With the debt ceiling suspension set to last until Jan. 1, 2025, Congress is likely to face another stand-off on debt issues following the <a href="https://www.benzinga.com/topic/2024-election">presidential election in November</a>, regardless of the winning candidate.
Real estate is another sector known to serve as a store of value, and investors can take part without the need to buy actual land. ETFs following the sector reflect its growth trends, with some of the largest being Vanguard Real Estate Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) and Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>).
ETFs following companies in Europe, Asia, Australia and other developed territories, also known as foreign asset ETFs, can also serve as a safe haven from U.S. volatility. Some of the largest include Vanguard Tax Managed Fund FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>) as well as iShares Core MSCI EAFE ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEFA#BATS">IEFA</a>).
The new <a href="https://www.bloomberg.com/news/articles/2024-04-01/us-government-debt-risk-a-million-simulations-show-danger-ahead?srnd=homepage-europe&amp;sref=TBDibEcD">report</a> by Bloomberg Economics executed one million simulations tinkering with several variables in order to encompass the widest possible range of future scenarios. In 88% of the scenarios, the debt ratio went up between now and 2034, making the path of U.S. government debt unsustainable.
Bloomberg's team started its analysis by setting off from projections published by the Congressional Budget Office, which warned earlier this year that the fiscal deficit is spinning out of control, even when assuming that inflation will stabilize at 2% and the<a href="https://www.benzinga.com//node/38021818"> Fed will drop interest rates</a>.
The firm used a computational analysis which created a model using "market pricing for future interest rates and data on the maturity profile of bonds," and its results surpassed Congress' predictions, taking U.S. debt into new records over the coming decade.
Now read: <a href="https://www.benzinga.com//node/37839953">Elon Musk Calls For &#8216;Strong-Willed President&#8217; After GOP Rep Warns &#8216;Economic Catastrophe Must Happen&#8217; Before Congress Gets Serious About &#8216;Out-Of-Control Spending&#8217;</a>
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