iShares Gold Bullion ETF (CGL.TO)

Despite the run, his firm is a big fan of gold -- more to go because of USD weakness. Turmoil in Iran is causing the price to fluctuate as investors shift over to oil. Gold will come back to life once things settle down.

Hedged, so you don't have to worry about fluctuations in the USD.

Unhedged version. Gold and scarce assets can really bring value to a portfolio. Builds in assets that source their returns on a different structural basis. Whereas stocks derive returns from interest rates and earnings, gold sources its return from geopolitical uncertainty, monetary debasement, and confidence in the fiat system. Those have been eroded and we've had some good price action.

Timely, as it's had a nice 10% correction. If there's a really good outcome from the Trump-Xi meeting, a further pullback is possible. If you don't own any gold, you should start building it into your portfolio now. If you already own some, add on weakness. Think about your ultimate allocation; probably should be higher than most people are comfortable with.

Scarce assets (gold, bitcoin, silver) are great diversifiers, and should form ~10-20% of a portfolio today. If we need more oil, we just drill more. But for scarce assets, you need to buy from someone who already owns them. So it has different drivers and responds differently in a portfolio.

If you were to look at a chart for the sector over 40 years, you'd see that gold bullion's gone up but gold equities really haven't. Not great long-term investments. Ultimately, you want to trim profits.

His rule of thumb: Say your allocation to the sector for the long run is 5%, and now your position is 10%. Take half the $$ out and deploy it somewhere else. Now you're back at 5%. Keep doing that every time it doubles. You'll never get rich doing that, but it's all about risk management.

Absolutely stick with this idea. Story for gold has actually gotten stronger. Central banks have been buying 1000 tons of gold a year for the last several years; up significantly since Russian invasion of Ukraine when US confiscated Russian assets. That event motivated many countries to look for a new reserve asset beyond treasury bills in US dollars.

Fragile geopolitical landscape lends itself to owning gold as a diversifier. Potential USD weakness is also a tailwind. Bullish trend for gold has lots of legs. 

See his Top Picks.

Prefers gold ETF over mining companies. Extremely attractive in uncertain economic environment. Geo-political tensions very high, which makes for a good time to invest in gold. Great hedge against inflation as well. Zero liability asset with long term enduring value. 

It's such a broad sector, from energy to oil-related to materials to gold or uranium.

The most popular one related to the energy index is probably XEG. Exposure to most of the larger Canadian energy producers like CNQ, SU, etc.

What's catching his eye more right now is CGL, the gold bullion ETF. Recently broken out. He can see a scenario where gold moves higher to $2600 or even $3000 over the next year and a bit. Avoids the issues that come with mining in certain jurisdictions. Good way to play exposure to gold and to the commodity market in general.

With mining companies, so much can go wrong. If looking to hedge against inflation or geopolitical events, look at gold bullion instead. CGL.C is the unhedged version.

Gold is a good hedge against inflation.
Good place for investors who are worried about recession.
Will keep shares.

GLD is the most liquid and actively traded one. It is a good way to hold gold bullions. If you want a currency hedge, he would use CGL. Gold stocks look cheap versus gold bullion right now.