The stock market’s incredible surge higher in recent weeks has invited skepticism among many high-profile investors such as Warren Buffett recently. There’s considerable concern stocks are now exhibiting bubble-like characteristics, and some long-term investors have been enticed to hoard cash, sit on the sidelines, and be patient right now. The idea of being “fearful when others are greedy” is a concept I take to heart in times like this.
Warren Buffett has famously been a long-term bear against the value of gold as a long-term investment. However, two quarters ago, the Oracle of Omaha added gold exposure to his portfolio in the form of shares of Canadian gold miner Barrick Gold (TSX:ABX)(NYSE:GOLD). This portfolio addition shocked the investment world, however. I think this was a very prudent move, and believe Buffett and his investment team know what they’re doing.
I think Barrick is a great gold miner to consider. That said, for others looking for a more diversified approach to picking up shares in gold miners as a hedge for the potential uncertainty we may see play out on the investment horizon, I’d recommend the VanEck Vectors Gold Miners ETF (TSX:GDX) as a great way to gain exposure to gold miners.
This is one of the best ETFs in the sector, and one I believe can provide investors with not only a nice hedge during times like these, but also the potential for long-term growth if we see a commodities bull market continue over the next few years.
Invest wisely, my friends.
