November 28, 2025
All That Glitters is Gold: A Continued Strategic Portfolio Allocation
Gold, and precious metals more broadly, continue to perform well these days. However, there are several reasons why investors should still consider allocating to the commodity or to the companies that mine it.
When we consider asset class performance over the past couple of years, gold stands out as a top performer. Priced in U.S. dollars, the value of a troy ounce of gold as at 10/15/2025 has risen by more than 50% over the one-year period and doubled over the two-year period and today is sitting at or near an all-time high. With growing interest in the yellow metal, many wonder if there’s still opportunity ahead and whether a strategic allocation is warranted.
Below are four compelling reasons that support the case for buying gold and gold companies today:
1. Macroeconomic and policy backdrop supports gold
With central banks (especially the U.S. Federal Reserve) moving toward interest rate cuts, real interest rates are likely to decline, reducing the opportunity cost of holding gold. Historically, gold prices have risen strongly during periods of monetary easing. The shift in global monetary policy and growing fiscal deficits in the U.S. have put pressure on the U.S. dollar, leading to a major tailwind for gold. Moreover, rising global tensions (e.g., U.S.–China relations, energy security, regional conflicts) make gold an attractive hedge for both institutional and retail investors alike.
TOTAL KNOWN ETF HOLDINGS OF GOLD
Source: Bloomberg Finance L.P, as November 21, 2025.
2. Gold’s role as a portfolio diversifier
Historically, gold performs well during equity market drawdowns and stagflationary environments, providing a proven hedge against volatility. Even as inflation moderates, persistent wage growth and commodity supply risks mean gold remains a long-term hedge against the erosion of purchasing power. Finally, gold’s typically low correlation to equities and bonds enhances portfolio diversification and resilience.
IMPROVE PORTFOLIO DIVERSIFICATION
Gold has lower long-term correlations to traditional asset classes
The defensive characteristics inherent in gold result in differentiated behavior compared to traditional asset classes throughout the cycle and particularly during times of market stress. As can be seen in the matrix, the gold has low long-term correlations with traditional asset classes, making the fund a powerful diversifier.
Source: Morningstar Research Inc., as of October 31, 2025, using monthly returns. All data is in base currency since October 1, 2015. Gold is LBMA gold price USD. Canadian Bonds = FTSE Canada Universe Bond Index, U.S. Bonds = Bloomberg U.S. Aggregate Bond TR Index, Canadian Equities = S&P/TSX Composite TR Index,, U.S. Equities = S&P 500 TR USD Index, Global Equities = MSCI ACWI NR Index.
3. Gold companies offer leverage to rising prices
As an example, a $100 increase in gold prices could significantly expand margins and operational leverage for miners, given their fixed cost base. Many gold producers have deleveraged, built strong balance sheets and focused on shareholder returns via dividends and buybacks over the past several years. Furthermore, gold equities trade at attractive multiples relative to historical averages, as price-to-NAV discounts in the past have often widened despite strong cash flow generation.
GOLD MINERS’ PRODUCTION MARGIN AT AN ALL-TIME HIGH
Source: World Gold Council, U.S Global Investors.
4. Structural demand tailwinds
Global central banks, particularly in emerging markets, are accumulating gold as a reserve diversification away from the U.S. dollar. We also tend to see periods of heightened volatility drive flows back into gold ETFs and physical gold, both from retail purchases of gold ETFs and from institutional buyers like money managers, allocating to both the commodity and underlying companies that mine the metal. Many institutional investors also find themselves underexposed to a top-performing sector, meaning a catch-up allocation will continue to provide support to the industry. As well, the longer-term mining cycle is constrained by permitting challenges, ESG pressures and rising input costs, limiting new supply and supporting higher long-term prices.
GOLD IS NOW THE SECOND MOST RESERVE ASSET FOR CENTRAL BANKS
Source: ECB.
Bottom line: Consider diversifying and seizing opportunity with gold and gold miners
Gold is a unique hedge in today’s environment of fiscal strain, geopolitical risk and shifting monetary policy. Buying gold provides insurance against macroeconomic shocks, while gold equities offer enhanced upside potential through operational leverage, improving balance sheets and historically low relative valuations. Together, they represent both protection and opportunity in a world of heightened uncertainty. To address your specific investment needs, CI Global Asset Management offers a number of solutions that provide targeted exposure to gold bullion and gold companies.
| Name | Inception Date | Mgmt. Fee % | 1 Mo | 3 Mo | 6 Mo | YTD | 1 Yr | 3 Yr | 5 Yr | 10 Yr | Since Inception |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gold and Gold Miners | |||||||||||
| CI Gold Corporate Class (Series F) | 2010-12-13 | 0.90 | -3.49 | 29.47 | 36.23 | 74.93 | 62.65 | 41.21 | 15.93 | 14.89 | 7.41 |
| CI Precious Metals Fund* (Series F) | 2005-07-28 | 0.90 | -3.10 | 43.48 | 54.70 | 111.03 | 88.27 | 49.22 | 19.25 | 18.91 | 12.85 |
| CI Gold+ Giants Covered Call ETF (CGXF.U) | 2022-03-03 | 0.65 | -5.57 | 29.88 | 33.29 | 80.90 | 64.44 | 36.26 | - | - | 21.58 |
| CI Gold+ Giants Covered Call ETF (CGXF) | 2011-06-01 | 0.65 | -6.00 | 28.49 | 31.37 | 82.09 | 61.75 | 34.18 | 12.98 | 12.23 | 3.62 |
| Gold Bullion | |||||||||||
| CI Gold Bullion Fund (VALT) | 2021-01-06 | 0.16 | 4.72 | 21.10 | 20.22 | 50.96 | 43.57 | 32.89 | - | - | 15.30 |
| CI Gold Bullion Fund (VALT.B) | 2021-03-17 | 0.16 | 5.59 | 23.19 | 23.13 | 49.58 | 47.23 | 35.75 | - | - | 22.78 |
| CI Gold Bullion Fund (VALT.U) | 2021-01-06 | 0.16 | 5.59 | 23.19 | 23.13 | 49.58 | 47.23 | 35.75 | - | - | 18.59 |
Source: Morningstar Direct Inc. as at October 31, 2025.
*CI Precious Metals Class is available in Corporate Class under CIG54003 (Series F).
About the Author
Thomas Galikowski, Vice-President, Institutional Portfolio Manager Investment Advisory – Equities, has more than 20 years of investment management sales experience. Thomas joined CI GAM in 2015, initially working as an ETF Specialist and later joining the broader sales team focusing on the IIROC channel. He progressively moved into the Institutional Portfolio Manager role in 2023 and covers CI GAMs equity product suite. As the IPM Vice-President – Investment Advisory - Equities for Equities at CI GAM, Thomas acts as a liaison between the equity portfolio managers and the sales team, helping with strategy, sales positioning and support, competitive analytics and providing advisors with a deeper understanding of our equity product solutions. He has extensive sales experience, working previously with leading Canadian Investment Management and Bank investment distribution organizations across an array of investment product structures. Mr. Galikowski is a graduate of the University of Toronto with an Honours degree (HBA) in Economics and Political Science, holds the Chartered Market Technician (CMT) designation, the Canadian Investment Manager (CIM) designation, and is a Fellow of the Canadian Securities Institute (FSCI).
About the Author
George Lagoudakis has more than 18+ years of experience as an institutional derivatives trader and strategist, having worked at a large Canadian bank-owned asset manager prior to joining CI First Asset in 2015. George graduated from the University of Toronto with a Bachelor of Commerce Honors degree and also holds the Chartered Financial Analyst (CFA) designation.
IMPORTANT DISCLAIMERS
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund and exchange-traded fund (ETF) investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compound total returns net of fees and expenses payable by the fund (except for figures of one year or less, which are simple total returns) including changes in security value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds and ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.
This document is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication.
Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what CI Global Asset Management and the portfolio manager believe to be reasonable assumptions, neither CI Global Asset Management nor the portfolio manager can assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.
Market conditions may change which may impact the information contained in this document. All charts and illustrations in this document are for illustrative purposes only. They are not intended to predict or project investment results. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI Global Asset Management has taken reasonable steps to ensure their accuracy. Market conditions may change which may impact the information contained in this document.
© 2025 Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Certain names, words, titles, phrases, logos, icons, graphics, or designs in this document may constitute trade names, registered or unregistered trademarks or service marks of CI Investments Inc., its subsidiaries, or affiliates, used with permission. All other marks are the property of their respective owners and are used with permission. The CI Exchange-Traded funds (ETFs) are managed by CI Global Asset Management, a wholly-owned subsidiary of CI Financial Corp.
