Gold continues to break records: how to invest in the metal from Argentina?

Gold continues to break records: how to invest in the metal from Argentina?

September 12, 2024 – 18:25

Experts estimate that precious metals are likely to continue to reach new highs in the short term. What investment opportunities are there?

With gold at historic highs, how can you invest in the metal from Argentina?

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He gold does not stop breaking records and this Thursday reached a historical maximum of US$2,588.45, following the publication of new inflation data in the US, specifically on “factory gate” prices (the Producer Price Index or PPI).

Apparently, there is a genuine positioning that is supported by the demand for increased fears of a recession or market volatility. Because of this, the market is risking that gold does not seem to be particularly overrated despite the recent movement, and even bet that could continue to climb in the short term.

In Argentina there are various options for investing in gold, depending on the profile of the investor, their objectives and access to the different markets. These options can range from from the physical purchase of gold to investments in financial products related to the precious metal.

The main alternatives for investing in gold

Buying physical gold

  • Coins and bullion: Gold coins (such as the Krugerrand or the American Eagle) and bullion can be purchased through jewellers, authorised banks and specialised exchange offices. Investing in physical gold can provide a hedge against inflation and devaluation, but involves storage and security costs.
  • Jewelry stores and specialty stores: In the country, some recognized jewelry stores or exchange houses sell certified gold bars or coins. It is important to verify the purity of the gold and the reputation of the seller to ensure the authenticity of the metal.

Gold-related mutual funds (FCI):

Some investment funds in Argentina are designed to track the performance of gold or the mining companies that extract it. Although they do not invest directly in the metal, their portfolios may be made up of assets that replicate its value. These funds allow investors to have exposure to the price of gold without having to buy the physical metal.

  • Advantage: They offer greater liquidity and fewer complications in terms of storage and security than physical gold.

Shares in mining companies

  • Investing in shares of mining companies that extract gold is another option. Many of these companies are listed on international stock exchanges, but it is possible to access them from Argentina through accounts with international brokers or through Cedears (Argentine Certificates of Deposit)which replicate the price of foreign shares.
  • Cedears: Cedears allow Argentine investors to access shares in mining companies listed on global markets. Companies such as Barrick Gold, Newmont Corporation and Franco-Nevada are available in this format.

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Investing in shares of mining companies that extract gold is another option.

Investing in shares of mining companies that extract gold is another option.

Gold ETFs (Exchange Traded Funds)

ETFs (Exchange Traded Funds) allow investors to track the price of gold without buying the metal directly. These funds are listed on international stock exchanges and replicate the performance of gold or a basket of mining company shares. To access these ETFs, it is necessary to have an account with an international broker that allows trading in foreign markets.

Some examples of gold ETFs are:

  • SPDR Gold Shares (GLD): One of the most popular ETFs that tracks the price of gold.
  • iShares Gold Trust (IAU): Another major fund that tracks the price of gold.
  • VanEck Vectors Gold Miners ETF (GDX): ETF that tracks the performance of gold mining companies.

Accounts with international brokers:

For more experienced investors, opening an account with a international broker It allows access to global markets where they can trade physical gold, gold futures, ETFs or shares of mining companies.

  • Brokers like Interactive Brokers, TD Ameritradeeither E*TRADE They allow these assets to be bought and sold from Argentina, although there may be restrictions and additional costs for operating abroad.

Source: Ambito

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