2017 pun: Go for Gold

I switch on the Bloomberg channel every morning.

These days, the hot topic is still the Trump administration. His cabinet appointments had not clam down the market and I think his promise to revive Reaganomics supply-side stimulus is going to be anti-climatic.

Naturally I think the market has ran ahead of itself.

I like Gold for 2017.

The US dollar rally and rise in US bonds has made quite a lot of gold holders nervous.

Since Nov, ETFs sold 216 tonnes of gold and the prices are reflected in the 3 biggest Gold ETFs.


The biggest of them all, SPDR Gold Shares ETF (GLD), has an asset of close to $34 billion. But I think the expense ration of 0.40% is a bit high.

iShares Gold Trust ETF is the one I like with expense ration of 0.25%. It has $7.66 billion under management and I think that's a decent size.

But if you want an ETF that holds physical gold then you can consider this one. ETFS Physical Swiss Gold Shares ETF.

All these 3 ETFs' charts for this year closely mirror the actual gold price. Well, that's why you buy ETFs.

Anyway, I would be surprised if Gold retreat even further from this point.

It is already oversold as it is.

I let you decide how many % of your holdings to place in Gold ETFs. I'm planning to put about 20%.