Gold is one of 2024’s best-performing assets. The largest ETFs offering exposure to physical gold and shares of miners are outpacing the S&P 500 by wide margins on a year-to-date basis.
Some strategies have been even better. While the average gain for the largest bullion-backed and miners ETFs is 28.8% this year, the WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN) is higher by more than 49%.
GDMN, which turns three years old in December, is an actively managed ETF. Obviously, GDMN is setting itself apart in the performance department. This confirms that its mix of futures contracts and mining stocks has the potential to outperform basic gold strategies.
Good Time to Consider GDMN
Monetary easing by the Federal Reserve has been a catalyst for gold and ETFs such as GDMN. However, experts believe gold can continue notching record highs in 2025. For example, deVere Group CEO Nigel Green highlights geopolitical concerns and central bank purchases as sparks.
“Gold buying has now surged to nearly three times the level it was before 2022, and the outlook suggests continued strong demand into 2025,” observed Green. “This wave of buying is not just about portfolio diversification—it’s a strategic move to mitigate risks. Countries, especially those wary of US financial sanctions, are increasingly turning to gold to shield their reserves from political and economic pressures.”
Green pointed to central banks in Brazil, China, India, Singapore and Turkey, among others, as dedicated buyers of gold.
Geopolitical Gold Forecast
With the exception of China, those countries probably aren’t targets for U.S. trade sanctions. However, there is the possibility of unpredictable geopolitical scenarios in 2025. Regardless of who becomes the next U.S. president, they’ll have to contend with attempting to end wars in Israel and Ukraine. Should they deploy economic sanctions against Iran or Russia, gold could notch more upside in 2025.
“This wave of buying is not just about portfolio diversification—it’s a strategic move to mitigate risks. Countries, especially those wary of US financial sanctions, are increasingly turning to gold to shield their reserves from political and economic pressures,” adds Green. “Gold offers unparalleled protection in such scenarios, especially as concerns grow around issues such as Fed independence, global debt sustainability, and financial sanctions.”
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