The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
Gold prices repeatedly reached new highs in 2024 and are again nearing record levels. Multiple factors, including rising geopolitical tensions and the consequent demand for safe-haven assets, drive this upward trend.
PHYS provides exposure to allocated gold bullion stored at the Royal Canadian Mint. Gold and PHYS have traded sideways since April, working off overbought conditions. With the Fed expected to begin cutting rates in September, I believe PHYS' consolidation is coming to an end. I reiterate my buy rating.
Known for his actions portrayed in The Big Short, hedge fund manager Michael Burry made headlines once more by investing heavily in Sprott Physical Gold Trust (NYSEARCA: PHYS), a closed-end fund that primarily deals in physical gold.
While he made adjustments to various positions, the most notable change was his decision to invest in the Sprott Physical Gold Fund NYSEARCA: PHYS. This article will explore the key points of this transaction and the reasons behind his choice to invest in physical gold instead of other forms of the precious metal.
Michael Burry, famous for his profitable investments during the 2008 financial crisis, has identified a smart opportunity for arbitrage in a physical gold ETF. Burry holds positions in the Sprott Physical Gold Trust, where investors can receive the gold if they purchase a sufficient amount. By purchasing at a discount, Burry can now sell close to the Net Asset Value (NAV) due to the attention garnered from his 13-F filing - provided he hasn't already taken delivery.
Gold prices are predicted to exceed $2,500/oz in 2024, with a potential upside of more than 20%. Factors contributing to this prediction include potential interest rate cuts, rising geopolitical tensions, and strong demand from central banks. Investors can profit from higher gold prices by investing in gold mining stocks with diversified operations, low costs, long mine life, safe political jurisdictions, strong balance sheets, and potential for dividends and share buybacks, and via the Sprott Physical Gold Trust.
As the capital markets await on a Fed pause on rate hikes, gold and palladium have been ticking higher. A pause may signify that eventually monetary policy easing could emerge as was expected heading into 2023.
As gold pushes to new highs, it could get an extra shove in the back from the U.S. Federal Reserve. A slowdown in interest rate hikes could be a major catalyst for gold prices to move even higher.