5 ETFs & Stocks To Tap Gold's Best Quarterly Gain In 4 Years

Editors' note: This article discusses one or more penny stocks and/or microcaps. Such stocks are easily manipulated; do your own careful due diligence.


Gold was on a stellar ride in the second quarter thanks to the COVID-19 pandemic, which has raised the appeal for the metal as a great store of value and hedge against market turmoil. Notably, the bullion topped $1800 per ounce for the first time since 2011, having gained nearly 17% in the quarter. This marks the biggest quarterly gain since 2016. In the first half of the year, gold beat equities and bonds.

The central banks across the globe have adopted aggressive stimulus measures and kept interest rates low to combat the sharp economic slowdown due to the COVID-19 pandemic that has added to the metal’s strength. Additionally, the recent rise in geopolitical tension made investors scurry to safety. A weak U.S. dollar also contributed to gold’s hefty gain in the quarter as the benchmark ICE U.S. Dollar Index was down 1.7%.

As a result, investors continued to pile into gold-backed exchange-traded funds, with holdings at a record. The solid trend is likely to remain this quarter given the impact of coronavirus on the U.S. and global economies, increased stock market volatility, the upcoming presidential election, civil unrest in the country, and global trade friction. This coupled with the continuation of massive monetary and fiscal stimulus lent strong support to gold prices.

Given this, we highlight five gold mining ETFs and stocks that led the market over the past three months. These could be excellent plays for investors who believe that gold will continue to move higher given the fundamentals remain the same.

U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report): Up 56%

This fund provides investors with access to companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means. It tracks the U.S. Global Go Gold and Precious Metal Miners Index, holding 29 stocks in its basket. Canada takes the lion’s share at 60.9%, followed by the United States (14.5%) and Australia (12%). It has amassed $91.7 million in its asset base and charges 60 bps in fees per year.

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