Introduction

Inflation has proven to be persistent, despite efforts to curb it. Throughout 2023, various indicators of inflation showed signs of slowing down, but the February numbers for Consumer Price Index (CPI) and Producer Price Index (PPI) were higher than anticipated.

Core CPI, excluding food and energy prices, increased by 3.8% in February. This rise was mainly driven by inflation in services, which, excluding energy services, remains above 5%. Given that services inflation is linked to the labor shortage, a swift resolution is unlikely.

Inflation tends to affect various areas of the financial markets, but historically, gold has served as a reliable hedge against inflation over time. Gold has also been a traditional safe haven during crises. With current geopolitical uncertainties and the upcoming 2024 presidential election, adding a crisis hedge like gold to your portfolio could be beneficial.

For retail investors, investing in gold can be challenging. However, gaining exposure to gold is made simple through the SPDR Gold MiniShares (GLDM, $42.91). GLDM is an exchange-traded fund that is backed by physical gold bullion, with its share price reflecting the price of gold while featuring a minimal management fee. With an expense ratio of just 0.10%, this gold ETF offers a cost-effective way to invest in gold.

Allocating a portion of your investments to gold is a prudent move in any economic environment and particularly in a year like 2024. This is why the SPDR Gold MiniShares is a recommended choice among the best ETFs to consider investing in now.