Ima in Barron’s: Yes, Gold Prices Can Keep Rallying
April 24, 2024
Read Time 1 MIN
John Maynard Keynes famously critiqued the gold standard as a "barbarous relic," yet recent trends in the gold market might suggest otherwise. Gold has hit all-time highs—and its investment demand hasn’t even reached peak levels yet, according to Portfolio Manager Ima Casanova. Despite the Federal Reserve's interest rate hikes (usually detrimental to gold), the price of gold has risen by 15% in 2024, reaching $2,409 per ounce.
What’s driving the rally? Massive purchases by emerging market central banks (particularly China, India and Turkey) are helping sustain gold prices even as more traditional drivers of demand have lagged. Looking forward, gold is well positioned to continue its rally, especially if Western investors begin to return to the market. The anticipation of rate cuts by the Federal Reserve, along with continued inflationary pressures and geopolitical risks, are likely to further bolster gold's appeal as a hedge against market volatility.
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Read the full article for more on Ima’s bullish outlook on gold and mining stocks as well as her views on how investors should approach allocating to gold—both bullion and equities.
Read Barron's Q&A: Gold Prices Can Keep Rallying, This Investing Pro Says. Here Are Her Picks.
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DISCLOSURE
VanEck assumes no liability for the content of any linked third-party site, and/or content hosted on external sites.
Fund holdings will vary. For a complete list of holdings in GDX, GDXJ and INIVX as of the most recent date, please click on the links or visit vaneck.com.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned is unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third-party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
VanEck Merk Gold ETF Risk Disclosures
VanEck Merk Gold ETF (the “Trust,” or “OUNZ”) material must be preceded or accompanied by a prospectus. Before investing you should carefully consider the Trust’s investment objectives, risks, charges and expenses.
Investing involves significant risk, including possible loss of principal. The Trust is not an investment company registered under the Investment Company Act of 1940 (“1940 Act”) or a commodity pool for the purposes of the Commodity Exchange Act (“CEA”). Shares of the Trust are not subject to the same regulatory requirements as mutual funds. As a result, shareholders of OUNZ do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.
The Sponsor for the Trust is Merk Investments, LLC. The Marketing Agent for the Trust is Van Eck Securities Corporation.
© Merk Investments LLC
© Van Eck Associates Corporation
Average Annual Total Returns as of June 30, 2024
| 1 Yr | 5 Yr | 10 YR | |
| GDX (NAV) | 15.24 | 7.16 | 3.51 |
| GDX (Share Price) | 14.47 | 7.12 | 3.46 |
* Returns less than one year are not annualized.
GDX Gross and Net Expense Ratio: 0.51%. Van Eck Associates Corporation (the "Adviser") has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses) from exceeding 0.53% of the Fund's average daily net assets per year until at least May 1, 2025. During such time, the expense limitation is expected to continue until the Fund's Board of Trustees acts to discontinue all or a portion of such expense limitation.
The performance data quoted represents past performance. Past performance is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Please call 800.826.2333 or visit vaneck.com for performance current to the most recent month ended.
| 1 Yr | 5 Yr | 10 YR | |
| INIVX (NAV) | 12.77 | 6.95 | 2.59 |
| INIVX (Max Sales Charge) | 6.28 | 5.69 | 1.98 |
* Returns less than one year are not annualized.
INIVX Maximum Sales Charge is 5.75%. A contingent deferred sales charge for Class A shares of 1.00% for one year applies to redemptions of qualified commissionable shares purchased at or above the $1 million breakpoint level.
The table presents past performance which is no guarantee of future results and which may be lower or higher than current performance. Returns reflect temporary contractual fee waivers and/or expense reimbursements. Had the Fund incurred all expenses and fees1, investment returns would have been reduced.
INIVX Expenses: Class A: Gross 1.43% and Net 1.43%. Expenses are capped contractually through 05/01/25 at 1.45% for Class A. Investment returns and Fund share values will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV.
General VanEck ETF and Mutual Fund Risk Disclosures
The principal risks of investing in VanEck ETFs and mutual funds include sector, market, economic, political, foreign currency, world event, index tracking, active management, social media analytics, derivatives, blockchain, commodities and non-diversification risks, as well as fluctuations in net asset value and the risks associated with investing in less developed capital markets. VanEck ETFs may also be subject to authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares risks. VanEck ETFs or mutual funds may loan their securities, which may subject them to additional credit and counterparty risk. ETFs or mutual funds that invest in high-yield securities are subject to subject to risks associated with investing in high-yield securities; which include a greater risk of loss of income and principal than funds holding higher-rated securities; concentration risk; credit risk; hedging risk; interest rate risk; and short sale risk. ETFs or mutual funds that invest in companies with small capitalizations are subject to elevated risks, which include, among others, greater volatility, lower trading volume and less liquidity than larger companies.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
The S&P 500® Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation sector; as an Index, it is unmanaged and is not a security in which investments can be made.
General Digital Assets Disclosures
Digital asset prices are highly volatile, and the value of digital assets can rise or fall dramatically and quickly. If their value goes down, there’s no guarantee that it will rise again. As a result, there is a significant risk of loss of your entire principal investment.
Digital assets include, but are not limited to, cryptocurrencies, tokens, NFTs, assets stored or created using blockchain technology, and other Web3 products.
Digital assets are not generally backed or supported by any government or central bank and are not covered by FDIC or SIPC insurance. Accounts at digital asset custodians and exchanges are not protected by SPIC and are not FDIC insured. Furthermore, markets and exchanges for digital assets are not regulated with the same controls or customer protections available in traditional equity, option, futures, or foreign exchange investing.
© Van Eck Securities Corporation, Distributor, a wholly-owned subsidiary of Van Eck Associates Corporation.
666 Third Avenue
New York, NY 10017
800.826.2333
Related Funds
DISCLOSURE
VanEck assumes no liability for the content of any linked third-party site, and/or content hosted on external sites.
Fund holdings will vary. For a complete list of holdings in GDX, GDXJ and INIVX as of the most recent date, please click on the links or visit vaneck.com.
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned is unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third-party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
VanEck Merk Gold ETF Risk Disclosures
VanEck Merk Gold ETF (the “Trust,” or “OUNZ”) material must be preceded or accompanied by a prospectus. Before investing you should carefully consider the Trust’s investment objectives, risks, charges and expenses.
Investing involves significant risk, including possible loss of principal. The Trust is not an investment company registered under the Investment Company Act of 1940 (“1940 Act”) or a commodity pool for the purposes of the Commodity Exchange Act (“CEA”). Shares of the Trust are not subject to the same regulatory requirements as mutual funds. As a result, shareholders of OUNZ do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.
The Sponsor for the Trust is Merk Investments, LLC. The Marketing Agent for the Trust is Van Eck Securities Corporation.
© Merk Investments LLC
© Van Eck Associates Corporation
Average Annual Total Returns as of June 30, 2024
| 1 Yr | 5 Yr | 10 YR | |
| GDX (NAV) | 15.24 | 7.16 | 3.51 |
| GDX (Share Price) | 14.47 | 7.12 | 3.46 |
* Returns less than one year are not annualized.
GDX Gross and Net Expense Ratio: 0.51%. Van Eck Associates Corporation (the "Adviser") has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses) from exceeding 0.53% of the Fund's average daily net assets per year until at least May 1, 2025. During such time, the expense limitation is expected to continue until the Fund's Board of Trustees acts to discontinue all or a portion of such expense limitation.
The performance data quoted represents past performance. Past performance is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Please call 800.826.2333 or visit vaneck.com for performance current to the most recent month ended.
| 1 Yr | 5 Yr | 10 YR | |
| INIVX (NAV) | 12.77 | 6.95 | 2.59 |
| INIVX (Max Sales Charge) | 6.28 | 5.69 | 1.98 |
* Returns less than one year are not annualized.
INIVX Maximum Sales Charge is 5.75%. A contingent deferred sales charge for Class A shares of 1.00% for one year applies to redemptions of qualified commissionable shares purchased at or above the $1 million breakpoint level.
The table presents past performance which is no guarantee of future results and which may be lower or higher than current performance. Returns reflect temporary contractual fee waivers and/or expense reimbursements. Had the Fund incurred all expenses and fees1, investment returns would have been reduced.
INIVX Expenses: Class A: Gross 1.43% and Net 1.43%. Expenses are capped contractually through 05/01/25 at 1.45% for Class A. Investment returns and Fund share values will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV.
General VanEck ETF and Mutual Fund Risk Disclosures
The principal risks of investing in VanEck ETFs and mutual funds include sector, market, economic, political, foreign currency, world event, index tracking, active management, social media analytics, derivatives, blockchain, commodities and non-diversification risks, as well as fluctuations in net asset value and the risks associated with investing in less developed capital markets. VanEck ETFs may also be subject to authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares risks. VanEck ETFs or mutual funds may loan their securities, which may subject them to additional credit and counterparty risk. ETFs or mutual funds that invest in high-yield securities are subject to subject to risks associated with investing in high-yield securities; which include a greater risk of loss of income and principal than funds holding higher-rated securities; concentration risk; credit risk; hedging risk; interest rate risk; and short sale risk. ETFs or mutual funds that invest in companies with small capitalizations are subject to elevated risks, which include, among others, greater volatility, lower trading volume and less liquidity than larger companies.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
The S&P 500® Index consists of 500 widely held common stocks covering industrial, utility, financial and transportation sector; as an Index, it is unmanaged and is not a security in which investments can be made.
General Digital Assets Disclosures
Digital asset prices are highly volatile, and the value of digital assets can rise or fall dramatically and quickly. If their value goes down, there’s no guarantee that it will rise again. As a result, there is a significant risk of loss of your entire principal investment.
Digital assets include, but are not limited to, cryptocurrencies, tokens, NFTs, assets stored or created using blockchain technology, and other Web3 products.
Digital assets are not generally backed or supported by any government or central bank and are not covered by FDIC or SIPC insurance. Accounts at digital asset custodians and exchanges are not protected by SPIC and are not FDIC insured. Furthermore, markets and exchanges for digital assets are not regulated with the same controls or customer protections available in traditional equity, option, futures, or foreign exchange investing.
© Van Eck Securities Corporation, Distributor, a wholly-owned subsidiary of Van Eck Associates Corporation.
666 Third Avenue
New York, NY 10017
800.826.2333