Investing in gold

At the Switzer Investor Day you spoke about gold in the portfolio. I am just about to invest via an ETF. Beta has theirs hedged and ANZ is unhedged. Which way should I go? The fees are .65% & .40% respectively. I will be doing my broking online.

Cheers.

A: Thanks for the question.

Notwithstanding the higher management fee, I would probably be inclined to buy the hedged gold ETF (from Bertashares – ASX Code QAU).

I think fair value for the AUD is around 70 US cents – so don’t see that much value in being unhedged at these levels.

I don’t rule out the AUD having a good go at the 70 cent level – but in the long term, I don’t think we are too far off fair value.


Read Answer