ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • 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
    • 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 VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Gold/Silver/Critical Minerals Channel
  2. Investors Seek Gold in Fallout From Banking Crisis
Gold/Silver/Critical Minerals Channel
Share

Investors Seek Gold in Fallout From Banking Crisis

Ben HernandezMar 16, 2023
2023-03-16

As the U.S. looks to avert a banking crisis, investors are shoring up their portfolios with gold. A renewed interest in the precious metal comes as investors assess the Silicon Valley Bank (SVB) fallout.

The collapse of SVB sparked concern that contagion could occur in the banking system, causing investors (retail and institutional) to add more gold to their portfolios in a safe haven scramble. In the meantime, short-term Treasury yields fell sharply, and according to a Kitco News article, it’s a familiar sight that hearkens back to 1987.

“Gold’s dramatic rise is largely the byproduct of a potential banking crisis with two banks showing ‘systemic risk’ according to bank regulators,” Kitco reported. “California’s Silicon Valley Bank and Signature Bank of New York required immediate action over the weekend to protect depositors’ capital. The banking meltdown resulted in the two-year Treasury yields having the largest three-day decline since black Monday in 1987.”

Likewise, traders who were initially short on gold were covering their positions with the expectation that the precious metal would rise. With the U.S. Federal Reserve acknowledging that rates would move higher amid sticky and stubborn inflation, gold had been retreating prior to the SVB banking fallout.

Some analysts think that trend will persist, especially once the SVB fallout dissipates and the banking system averts a crisis. All eyes will once again be fixated on the Fed and whether it continues on an aggressive rate-hiking path.

“Gold market should lose momentum once it settles at a stable technical level and give up some of its recent gains back into next week, as there is still a risk the Fed continues to champion a hawkish stance, should next week’s CPI report not show any easing and economic data remain firm,” said Bart Melek, head of commodity strategy at TD Securities in a note.

Get Gold Exposure Via 2 ETFs

If gold prices do take a dip, it’s an opportunity to get gold exposure. Exchange traded funds (ETFs) in particular provide various paths for gold exposure, including one that adds an environmental, social, and governance (ESG) aspect.

Investors who want gold exposure have options as opposed to simply buying physical gold directly. One option is the Sprott Physical Gold Trust PHYS, which is a fund that provides an enhanced physical bullion structure, offering the ease of purchase and sale that comes with being traded on an exchange.

For investors who want gold exposure with ESG, they can consider the Sprott ESG Gold ETF (SESG ). The fund directly sources from select gold producers that Sprott believe are leaders when it comes to ESG mining and sustainability.

SESG adds a backdoor play on gold prices, investing in ancillary services that support the gold market as opposed to the actual precious metal itself. In addition, the ESG component gives conscious investors an opportunity to allocate capital to gold miners exhibiting ESG-friendly operations.

For more news, information, and analysis, visit the Gold/Silver/Critical Minerals 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