Gold 2023 Outlook: Recession and Rates to Remain in Focus
Will the new year bring upside surprises for gold? Review three potential scenarios for gold in 2023 from the SPDR Gold Strategy Team.
Gold’s investment characteristics, rooted in multiple sources of demand across global economic and business cycles, may help gold serve multiple roles in an investor’s portfolio — during good times and bad.
Gold is often classified as a commodity alongside other precious metals or broader commodities, like oil and real estate. But with gold’s unique fundamentals and characteristics, it may warrant its own classification in an investor’s portfolio.
Investors can access gold in many different ways — from bars and coins to mutual funds and futures contracts. But gold-backed exchange traded funds (ETFs) offer a high degree of flexibility, transparency, and accessibility to the gold market with the cost-effective liquidity benefits of an ETF wrapper. Learn about the different ways gold can be added to a portfolio and the potential advantages of accessing gold using an ETF.
In November 2004, State Street Global Advisors launched SPDR GLD®, the first US gold-backed ETF. GLD’s arrival made it convenient and cost effective for investors to have gold exposure in their portfolios. We’ve built a dedicated team of SPDR gold strategists to help investors understand how gold can fit in a portfolio, and launched GLDM® in 2018 in response to growing investor need for a low-cost, gold-backed ETF option.
SPDR Gold Shares® (GLD®) the world’s largest and most liquid gold-backed ETF offers strategic, long-term investors access to the gold market.3
SPDR Gold MiniShares® (GLDM®) offers investors a lower share price and holding costs, at an expense ratio of just 10 bps.
1 Bloomberg Finance L.P., & State Street Global Advisors, as of August 31, 2022.
2 Based on AUM. Bloomberg Finance L.P., World Gold Council, and State Street Global Advisors, as of August 31, 2022.
3 Bloomberg Finance L.P, World Gold Council and State Street Global Advisors, data as of August 31, 2022.
A basic good used in commerce that is interchangeable, or “fungible,” with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. For example, crude oil is a commodity that is used to make motor fuels, heating oil and lubricants.
A strategy of combining a broad mix of investments and asset classes to potentially limit risk, although diversification does not guarantee protection against a loss in falling markets.
In modern portfolio theory, diversification is an approach used to potentially reduce the overall risk of the portfolio by holding a mix of assets with low correlations to each other. The potential benefit of holding uncorrelated assets is that some investments may rise while others fall.
The ability to quickly buy or sell an investment in the market without impacting its price. Trading volume is a primary determinant of liquidity.
A risk-based profitability measurement framework for analyzing risk-adjusted financial performance; it is designed to provide a consistent view of profitability across different assets.
Important Risk Information
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.
This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.
Investing involves risk, and you could lose money on an investment in each of SPDR® Gold Shares Trust (“GLD®” or “GLD”) and SPDR® Gold MiniShares® Trust (“GLDM®” or “GLDM”), a series of the World Gold Trust (together, the “Funds”).
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs’ net asset value. Brokerage commissions and ETF expenses will reduce returns.
Commodities and commodity-index linked securities may be affected by changes in overall market movements, changes in interest rates, and other factors such as weather, disease, embargoes, or political and regulatory developments, as well as trading activity of speculators and arbitrageurs in the underlying commodities.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
Diversification does not ensure a profit or guarantee against loss.
Investing in commodities entails significant risk and is not appropriate for all investors.
Important Information Relating to GLD and GLDM:
GLD and the World Gold Trust have each filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for GLD and GLDM, respectively. Before you invest, you should read the prospectus in the registration statement and other documents each Fund has filed with the SEC for more complete information about each Fund and these offerings. Please see each Fund’s prospectus for a detailed discussion of the risks of investing in each Fund’s shares. The GLD prospectus is available by clicking here, and the GLDM prospectus is available by clicking here. You may get these documents for free by visiting EDGAR on the SEC website at sec.gov or by visiting spdrgoldshares.com. Alternatively, the Funds or any authorized participant will arrange to send you the prospectus if you request it by calling 866.320.4053.
None of the Funds is an investment company registered under the Investment Company Act of 1940 (the “1940 Act”). As a result, shareholders of each Fund do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act. GLD and GLDM are not subject to regulation under the Commodity Exchange Act of 1936 (the “CEA”). As a result, shareholders of each of GLD and GLDM do not have the protections afforded by the CEA.
Shares of each Fund trade like stocks, are subject to investment risk and will fluctuate in market value.
The values of GLD shares and GLDM shares relate directly to the value of the gold held by each Fund (less its expenses), respectively. Fluctuations in the price of gold could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the gold represented by them.
None of the Funds generate any income, and as each Fund regularly sells gold to pay for its ongoing expenses, the amount of gold represented by each Fund share will decline over time to that extent.
The World Gold Council name and logo are a registered trademark and used with the permission of the World Gold Council pursuant to a license agreement. The World Gold Council is not responsible for the content of, and is not liable for the use of or reliance on, this material. World Gold Council is an affiliate of the Sponsor of each of GLD and GLDM.
GLD® is a registered trademark of World Gold Trust Services, LLC used with the permission of World Gold Trust Services, LLC. MiniShares® and GLDM® are registered trademarks of WGC USA Asset Management Company, LLC used with the permission of WGC USA Asset Management Company, LLC.
For more information, please contact the Marketing Agent for GLD and GLDM: State Street Global Advisors Funds Distributors, LLC, One Iron Street, Boston, MA, 02210; T: +1 866 320 4053 spdrgoldshares.com