ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Gold & Silver Investing Channel
  2. Compared to Other Commodities, Is Gold Underperforming?
Gold & Silver Investing Channel
Share

Compared to Other Commodities, Is Gold Underperforming?

Evan HarpApr 21, 2022
2022-04-21

Gold has been performing well, with its price slowly grinding upward, but many investors find it lacking compared to other commodities.

Wells Fargo’s head of real asset strategy John LaForge notes in a Kitco article, “Since moving to favorable on March 4, 2020, gold prices have gone up 17%, while the Bloomberg Commodity Total Return Index has gained 77%. In our view, the performance difference is more about the average commodity performing unusually well than about gold prices performing poorly.”

Rather than being viewed as underperforming compared to other commodities, LaForge sees gold as potentially being the next big play. The poor performance of stocks, geopolitical turmoil, and a dire inflation crisis are setting the stage for gold to have explosive performance in the coming months and years.

Gold and Bitcoin Battle to Be Store of Value King

“On the store-of-value front, bitcoin has been getting much of the attention lately, but we think gold may be the next play. Gold’s price chart appears to be slowly grinding higher, while bitcoin’s price has been stuck in a wide $30K to $69K range for the past 12 months,” LaForge writes in a note, eyeing a $2,100 end-of-year price for the yellow metal.

Unlike bitcoin, gold can be physically held and has a universally acknowledged history of being a store of value. It is also a significantly less volatile asset. While bitcoin’s price has been vacillating wildly, gold’s price has slowly and steadily improved.

Additionally, the fundamentals for gold point to a major rally coming down the pike. “Supply is dropping below the five-year average, which has been a bullish sign for gold prices historically. Historically, each time this has happened, a multi-year gold price rally followed,” LaForge says. “Clearly, there is no guarantee that this will happen again, but we like the odds that it might.”

Investors can get exposure to physical gold through the Sprott Physical Gold Trust PHYS. For a gold equities play, investors can look at the Sprott Gold Miners ETF (SGDM B-) or the Sprott Junior Gold Miners ETF (SGDJ C+).

For more news, information, and strategy, visit the Gold & Silver Investing Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X