Finding a hidden nugget of gold
Gold is cheap now but chances are you already have enough.
Aritzia’s profit soars in Q3
The apparel retailer’s profit jumped 72% in Q3, as its e-commerce and U.S. net revenue spiked.
As gold prices drop from their lofty heights, some investors are wondering if it’s a good time to buy the precious metal. Sure, prices are cheaper now, but before loading up on gold, you’d be wise to first take a close look at your own portfolio.
If you’re invested in the Canadian stock market, there’s a good chance you already have some exposure to gold. The S&P/TSX 60 holds nine companies that mine or explore for the metal: firms like Goldcorp, Barrick Gold and Yamana Gold comprise more than 8% of the index. Some of these companies use futures to hedge their exposure to gold prices, says Laurence Booth, a professor at the Rotman School of Management, but their fates are still tied to prices because they produce more when gold is expensive. “You’ve got exposure to gold when you buy an ETF that tracks Canadian stocks,” says Booth, “so make sure you’re not double-counting.”
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
Inheritances can strain sibling relationships—how to make estate planning smoother
Communication is key to ensuring an inheritance doesn’t cause friction between siblings. Follow these tips to avoid conflicts in...
HISAs vs. bonds and GICs: Where should Canadians hold their cash?
Sponsored By
Simplii Financial
2024 tax credits, due dates and more: Your income tax return guide
We have everything you need to know about tax credits, changes and deadlines, and more. Get the info you...
CRA to continue administering changes to capital gains tax during prorogation
The increase to the capital gains inclusion rate is going ahead—at least for now, says Canada’s Finance Department.
How prorogation will impact capital gains tax changes in Canada
The Canada Revenue Agency has yet to offer guidance on how the Liberals’ capital gains tax proposal will be...
The best 5-year fixed mortgage rates in Canada
You have so many options for finding the best mortgage rate for you. Here’s how you can compare some...