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In this episode of ETF Spotlight, I speak with Imaru Casanova, Portfolio Manager for Gold and Precious Metals at VanEck, about gold and gold miners. VanEck has long been a leader in gold investing, having launched the nation’s first gold fund—the VanEck International Investors Gold Fund (INIVX - Free Report) —in 1968, and the first gold miners ETF (GDX - Free Report) in 2006.

Gold has outperformed almost all other major asset classes this year. The precious metal is up 26% year-to-date, whereas the S&P 500 ETF (SPY - Free Report) is down about 6%. Miners, which are generally high-beta plays on the price of gold, have done even better than the metal itself.

Gold has been hitting new records amid market uncertainty driven by trade tensions. However, after reaching an all-time high of over $3,500 per troy ounce last week, gold prices paused on signs of progress in tariff negotiations.

Gold purchases by central banks have soared in recent years, particularly following Russia's invasion of Ukraine. According to the World Gold Council, total annual gold demand reached a record high in 2024, driven by strong, sustained central bank buying and growing investment demand.

Many central banks are now purchasing gold instead of U.S. Treasuries, due to the rapid rise in U.S. debt and fiscal deterioration. They are also seeking to diversify away from the U.S. dollar. This accelerating de-dollarization trend could help sustain the gold rally.

While central banks have been the main driving force behind gold’s rally, retail investors largely stayed on the sidelines. Gold ETFs saw net outflows last year despite the metal’s impressive performance. However, we’ve seen stronger inflows into these ETFs in 2025, which could further support gold prices.

I believe gold deserves a small allocation in a diversified portfolio, primarily due to its risk-reducing benefits. The SPDR Gold Trust (GLD - Free Report) is the largest and most liquid gold ETF, with over $100 billion in assets under management. For long-term investors, the SPDR Gold MiniShares Trust (GLDM - Free Report) and the iShares Gold Trust Micro (IAUM - Free Report) are more cost-effective options.

The VanEck Merk Gold Trust (OUNZ - Free Report) also offers the unique option of taking physical delivery of gold. Among miners, Imaru favors Agnico Eagle Mines (AEM - Free Report) , Alamos Gold (AGI - Free Report) , and Newmont (NEM - Free Report) , which are top holdings in the fund she manages.

Running Length: 00:38:41

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