Gold Is Surging. How to Play It With ETFs

Excerpt from Barron’s

Gold Is Surging. How to Play It With ETFs
06/21/2019 By Evie Liu

Cumberland-Advisors-David-Kotok-In-The-News

While gold doesn’t offer yield like bonds do, this matters less in a world where rates on many fixed-income assets are at historic lows. Investors also expect the Federal Reserve to cut its target rate later this year, which could cause the U.S. dollar to fall. A cheaper greenback could help gold gain even more traction because gold prices tend to move in the opposite direction of the dollar.

Gold could also benefit as countries diversify their reserves away from dollar-denominated assets, says David Kotok of Cumberland Advisors. Global central banks have been accumulating gold over the past decade, with China tripling its gold reserves since 2009 and Russia increasing its by four times, according to World Gold Council data. “What they’re doing is to substitute gold in an increasing amount for U.S. Treasury holdings,” explains Kotok, “If China broadens its gold holdings further to match other countries, such an appetite will cause an upward movement in the gold price.”

Read the full article at the Barron’s Website


Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.

Sign up for our FREE Cumberland Market Commentaries

Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.