"Gold has doubled in price in the past two years. Gold dividend ETFs like and have been major beneficiaries. This isn't just a fluke or speculation. Central banks and individuals worldwide are actively piling into gold as they see it as the safest asset to put their money into. Markets are healthy at the moment, and we are amidst an AI rally, so why are investors still choosing gold?"
"The answer lies mostly outside the U.S. Most of the world is not experiencing an "AI boom" right now, and they no longer see the dollar as the safe haven it used to be. Consequently, they're buying gold instead, and the trend is expected to continue. Major economies worldwide are cutting interest rates and are therefore eliminating the opportunity cost of hoarding non-yielding gold."
"Gold constitutes up to 25% of this ETF's assets, with the synthetic options strategy having a notional value of up to 75% of net assets. The fund writes (sells) covered call options on gold ETPs with approximately one-month expirations to generate monthly income. This strategy converts a portion of the potential upside price appreciation of gold into current income for shareholders, though it necessarily caps the fund's participation in gold price gains beyond the strike price of the written calls."
Gold prices have doubled over the past two years as central banks and individuals worldwide accumulate metal, viewing it as a safe asset despite healthy markets and an AI rally in the U.S. Demand is strongest outside the U.S., where many economies are not participating in the AI boom and trust the dollar less. Global interest-rate cuts reduce the opportunity cost of holding non-yielding gold. Supply is insufficient to meet rising demand, especially if central banks reduce dollar dependence. Dividend-focused gold ETFs, such as NEOS Gold High Income ETF, combine gold exposure and covered-call option strategies to produce monthly income while limiting upside.
Read at 24/7 Wall St.
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