Beware the Hype as Gold Hits New Record

The precious metal is often touted as a safe haven and hedge against inflation, but how has it really performed over the long-term? Morningstar analyst Amy Arnott investigates

Amy Arnott 28 July, 2020 | 9:51AM

Gold bars

Gold has been one of the hottest performers so far in 2020. The price of the yellow metal climbed 25% in the first six months of the year and has just hit a new record, while precious metals and commodities funds focusing on gold and other metals have been among the best performers in 2020’s turbulent market.

In response, money has flooded into gold funds. SPDR Gold Shares, an exchange-traded fund that ranks as by far the largest precious metals fund, has scooped up $20.4 billion in estimated net inflows over the past 12 months, increasing its asset base by roughly 30%.

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Amy Arnott  Amy Arnott

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