Gold rocketed up through $4000 dollars an ounce today, securing a record high price.
The current rally in gold has strong fundamental support and key drivers, particularly a reemergence of U.S. Dollar weakness this year. The Dollar currently shows no signs of reversing its downward trend, and pervasive global tensions and uncertainty could point to further upside potential in gold.
Remember, investing isn’t all or nothing so one can use this opportunity to take some profits off the table if they prefer. However, history shows when commodities like gold (or oil) are on a major trend it is best to let such investments run until underlying conditions change.
Gold and Gold Miner stocks offer a valuable portfolio hedge and are still positioned for strong performance. The Gold Miner ETF in the InvesTech Model Fund Portfolio was added on September 29, 2017 –when gold was $1282.55 an ounce– and was intended to give the Portfolio exposure to gains in the underlying metal. The position has been adjusted over the years, as we added to the allocation or locked in profits. Today, the ETF has gained an exceptional +135% year-to-date, and we continue to view Gold as an essential component of our defensive Model Fund Portfolio.