“See Gold as a nice safe bet heading into the U.S. election”, Robert Cohen

Gold is a metal which is considered as the safe hedge in portfolios. Especially as a hedge against the geopolitical uncertainties during the presidential elections.

It also provides a hedge against potential inflation, weakness in currency and volatility of equity markets. In this favorable scenario, the Dynamic Precious Metals Fund is keeping its eye on gold bullion.

Reportedly, this Fund beats 82% of its peers in this year. “The Dynamic Precious Metals Fund sees gold as a nice safe bet heading into the U.S. election in November.” Says portfolio manager Robert Cohen.

The precious metals-focused fund, which is a subsidiary of Bank of Nova Scotia, climbed 63% in its growth in the year 2020. This is the result of their investments in gold and silver exposed equities: Bloomberg reports.

Even among the volatile situations, many Investors have turned their heads towards this precious metal. The real interest rates and central bank stimulations have paved the way for rising demand. 

But the price is varying simultaneously over the months. This roller coaster ride may also impact the investment in tech stocks.

Performance level

Even among the uncertain times, this Toronto-based Dynamic Precious Metals Fund, has outperformed the gold price and the S&P/TSX Composite Gold Index this year. It has about C$745 million in assets under management, according to Bloomberg.

This Fund makes sure to invest in a diverse range of precious-metal equities including producers, developers and explorers worldwide. Thus by decreasing the level of risk.

Robert Cohen also thinks this strategy is one of the reasons why his fund’s risk is better managed than its peers. “Our down-capture ratios are superior to our peer group because of where and what we invest in.” He says.

The effect of gold price is beneficial worldwide and Cohen says that he expects some impactful events to take place in the case of gold.

Check out spot gold prices in your local currency.

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