Will Rhind: The Catalyst That Could Bring Generalists Back to Gold

TL;DR

Cranek Shares CEO discusses the rise to $1 billion AUM, the potential for gold to reach all-time highs, and the role of ETFs in portfolios.

Transcript

I'm Charlotte McLeod with the investing news network and here today with me is will rind founder and CEO of cranek shares thanks so much for being here on line with me today Thank You Charlotte good to be with you great so let's start by talking a little bit about cranek shares you recently reached over 1 billion in assets under management which I ... Read More

Key Insights

• 💐 Cranek Shares' success can be attributed to its launch of low-cost commodity and gold ETFs, meeting market demand for affordable investment options.
• 🥺 The worsening economic conditions, massive monetary response, and fiscal stimulus create a favorable environment for gold, potentially leading to new all-time highs.
• 😘 Bonds may see reduced allocations in portfolios as investors seek alternative diversifiers like gold in a low interest rate environment.
• 👀 The GraniteShares Gold Trust ETF serves as a liquid and efficient option for investors looking to include gold in their portfolios.
• 💐 X-Out, an ETF strategy offered by Cranek Shares, aims to identify and eliminate underperforming companies through a rules-based approach, potentially generating outperformance by removing losers from the portfolio.
• 💱 Sectors like oil and gas, as well as traditional retail, are examples of industries that may be excluded from the X-Out portfolio due to digital disruption and changing consumer preferences.
• ✋ Cranek Shares' Alternative Income ETF (HIPs) offers a high level of income to investors by investing in pass-through security portfolios of entities required to distribute most of their income.

Questions & Answers

Q: What led to the rise of Cranek Shares to $1 billion in assets under management?

Cranek Shares achieved the milestone by launching low-cost commodity and gold ETFs, which filled a market need and attracted investors looking for cost-effective exposure to these assets.

Q: Do you think gold could reach its previous all-time high?

The CEO believes it is realistic for gold to surpass its previous all-time high, considering the similarities between the current economic conditions and the 2008 financial crisis. The massive monetary response and fiscal stimulus could drive gold prices higher.

Q: How does the role of gold in portfolios change in a low interest rate environment?

With zero interest rates, the CEO suggests that investors may reconsider the role of bonds in their portfolios. Gold, being uncorrelated to equities and bonds, could potentially replace a portion of the fixed income allocation as a better diversifier.

Q: Who are the main investors in the GraniteShares Gold Trust ETF?

The ETF attracts a wide range of investors, including retail investors using online brokerage accounts, financial advisors managing client portfolios, institutions like foundations and endowments, and hedge funds.

Summary & Key Takeaways

• Cranek Shares reached over $1 billion in assets under management in less than three years by launching low-cost commodity and gold ETFs.

• The CEO believes that gold could reach all-time highs due to the worsening economic conditions, massive monetary response, and fiscal stimulus.

• In the current environment, gold is acting as a better diversifier than bonds, leading to potential portfolio reallocation.